TULSA, Okla., Oct. 21 /PRNewswire-FirstCall/ -- Syntroleum Corporation
(Nasdaq: SYNM) announced today that Congress has appropriated $2.0 million for
Phase II development of Syntroleum's proposed Flexible JP-8 single battlefield
fuel (SBF) Pilot Plant Program. The amount was approved for advanced concept
technology development under fiscal year 2004 U.S. Department of Defense
appropriations legislation, which was signed into Public Law 108-87. This is
the second such appropriation for developing the SBF concept and follows the
$3.5 million DOD appropriation that Syntroleum was awarded in fiscal year 2002
for Phase I development. Phase I will be completed by October 31, 2003.
Phase I included design of a marine-based fuel-production plant and
characterization of gas-to-liquids (GTL) synthetic JP-8/JP-5 fuels for
military diesel, turbine and fuel cell applications.
This follow-on Phase II effort will include expanded engineering and
design work for SBF production systems for sea and land; and further SBF
characterization and demonstration work for all branches of the military. The
specific work items are now under discussion and will be confirmed in a
contract that Syntroleum expects to soon finalize with the U.S. Tank,
Automotive and Armaments Command (TACOM).
The appropriation was secured through the efforts of U.S. Senator James M.
Inhofe (R-OK) along with U.S. Congressmen Earnest Istook, Jr. (R-OK 5th
district), Tom Cole (R-OK 4th district), John Sullivan (R-OK 1st district) and
Frank D. Lucas (R-OK 3rd district).
"Syntroleum's gas-to-liquids barge project holds great promise for
alternative fuel production in a way that has both civilian and military
applications," said U.S. Senator Inhofe, who is a member of the Senate Armed
Services Committee and Chairman of the Senate Environment and Public Works
Committee. "The benefits of this kind of technology to our country are
substantial and I am confident that these funds will aid in the further
development of this process for the benefit of our nation."
"This is great news for Syntroleum and for Northeastern Oklahoma," stated
Congressman Sullivan. "Not only will these funds help our soldiers in the
battlefield, but they translate into jobs and development for our economy."
"I am proud to have worked with the delegation in ensuring that this
funding was included in the Department of Defense appropriations bill," stated
Congressman Cole, who is a member of the House Appropriations Committee.
"These funds will provide the military a tool which it can use to explore new
and inventive fuel technologies."
"The work that was conducted in Phase I of this program suggests that
synthetic fuels produced in or near theater of operations could offer
substantial benefits to our military," stated Kenneth Agee, Chairman and Chief
Executive Officer for Syntroleum. "Implementation of a single battlefield
fuel made from natural gas could provide economic and logistical advantages to
our military in times of conflict as well as in normal peacetime operations."
Syntroleum Corporation owns a proprietary GTL process for converting
natural gas into synthetic liquid hydrocarbons. The company plans to use its
technology, as well as other third party gas processing technologies, to
develop and participate in gas monetization projects in a number of global
This document includes forward-looking statements as well as historical
information. Forward-looking statements include, but are not limited to,
statements relating to the testing, certification, characteristics and use of
synthetic fuels and alternative fuels, the Syntroleum Process and related
technologies and products. When used in this document, the words
"anticipate," "believe," "estimate," "expect," "intent," "may," "project,"
"plan" "should," and similar expressions are intended to be among the
statements that identify forward-looking statements. Although Syntroleum
believes that its expectations reflected in these forward-looking statements
are reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with these
forward-looking statements. Important factors that could cause actual results
to differ from these forward-looking statements include the potential that
commercial-scale GTL plants will not achieve the same results as those
demonstrated on a laboratory or pilot basis or that such plants will
experience technological and mechanical problems, the potential that
improvements to the Syntroleum Process currently under development may not be
successful, the impact on plant economics of operating conditions (including
energy prices), construction risks, the ability to implement corporate
strategies, competition, intellectual property risks, Syntroleum's ability to
obtain financing and other risks described in the company's filings with the
Securities and Exchange Commission.
(R) "Syntroleum" is registered as a trademark and service mark in the U.S.
Patent and Trademark Office.
SOURCE Syntroleum Corporation