Syntroleum Awarded $2 Million By DOD to Further Develop Flexible GTL Production Systems and Single Battlefield Fuel
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 locations. 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
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