LONDON, September 7, 2012 /PRNewswire/ --
- Group selected to supply FT technology for 1,000 bpd commercial GTL plant for Calumet at its Karns City, Pennsylvania site
- Majority / all project funding will be supplied by Calumet
- Plant design to be complete by end 2012
- Final 'decision to proceed' expected in H1 2013; revenues to the Group of:
- $10 million during 2013 and 2014
- Over $30 million during first 20 years of plant operation
Oxford Catalysts Group PLC, the leading technology innovator for synthetic fuels production, is pleased to announce that it has been selected to supply Calumet Specialty Product Partners, L.P. ("Calumet") for a commercial Gas-to-Liquids ("GTL") plant to be located at its Karns City, Pennsylvania facility.
Calumet is a NASDAQ listed specialty petroleum products manufacturer, operating 135,000 bpd of refining capacity in the United States, and producing some 1,500 different products.
Calumet recently announced its plans to expand its Karns City facility with the addition of a GTL plant of approximately 1,000 bpd capacity. The Group's Fischer-Tropsch ("FT") technology was selected for this facility which is being designed and delivered by Ventech Engineers LLC, specialists in modular processing plants. Calumet intends to use the FT products as feedstock for the production of ultra-high quality speciality products.
The plant design is expected to be complete by the end of 2012, with site specific engineering and a decision to begin fabrication occurring in the first half of 2013. Calumet intends to provide the majority, if not all of the funding for this project, and to start production in the second half of 2014. Any remaining funding will be provided by Calumet's other project partners.
A final decision by Calumet to proceed with fabrication is expected to generate revenues to the Group of $10 million during 2013 and 2014 (involving the supply of multiple FT reactors with nominal capacity of 125 bpd each, containing a total of several tonnes of FT catalyst). Operation of the plant is expected to generate more than $30 million of income from ongoing supply of FT catalyst over the first twenty years of production.
Roy Lipski, CEO of Oxford Catalysts Group said:
"We are delighted to have been selected for this planned commercial plant and to be in a position to announce another one of our prospects progressing to commercial implementation.
"Due to the historically large gap between high oil prices and low gas prices in North America, we're experiencing very strong interest from potential clients keen to take advantage of this arbitrage opportunity. We are confident of the coming growth of GTL in North America and elsewhere, and of playing a leading role in this emerging market."
Bill Grube, Vice Chairman and Chief Executive Officer of Calumet said:
"Converting natural gas into ultra-high quality feedstock through GTL will reduce our costs, increase security of supply and improve product quality. We are excited to be progressing with this project for our Karns City facility; it will help us further utilise our current specialty product assets."
Notes to Editors
Oxford Catalysts enables modular Gas-to-Liquids ("GTL") plants to convert unconventional, remote and problem gas into valuable liquid fuels. Systems based on the Group's technology (marketed under the brand name Velocys) are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller fields than is possible with competing systems. Together with world-class partners, Oxford Catalysts provides complete modular GTL solutions that address an untapped market of up to 25 million barrels of fuel a day.
Oxford Catalysts Group PLC is listed on the AIM market of the London Stock Exchange (LSE: OCG). The Group has some 85 employees with facilities near Oxford, UK and Columbus, Ohio, USA.
NASDAQ listed Calumet Specialty Product Partners, L.P. is a leading independent producer of high quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customised lubricating oils, solvents, waxes and asphalt used in consumer, industrial, and automotive products. Calumet also produces fuels including gasoline, diesel and jet fuel. They are based in Indianapolis, Indiana and have eight plants in the US, located in Illinois, Louisiana, Wisconsin, Pennsylvania, Texas and Missouri.
Ventech Engineers LLC is a global leader in the design and construction of modular refineries, plant relocations, and specialised market appraisals for the refining industry. It has offices in Texas, Louisiana, Moscow, and the Philippines.
For further information, please contact:
Roy Lipski, CEO
Susan Robertson, CFO
Cenkos Securities (Nomad and Broker)
Ken Fleming / Beth McKiernan
Billy Clegg / Alex Beagley
SOURCE Oxford Catalysts Group PLC