Worldwide Licensing Information

Although Synfuels International refers to its technology broadly as GTL, the technology can be broken down into three stages. The first stage is Gas-To-Acetylene (GTA) which can be a standalone process. The second stage takes the acetylene and converts it to ethylene and the combined first and second stage is referred to as Gas-To-Ethylene (GTE) which can also be a standalone process. The third stage uses either a single step or two step oligomerization process to convert ethylene to desired liquid such as gasoline. The three stages combined are what Synfuels refers to as the GTL process. The third stage can also be a standalone process. Finally, while not a part of GTL, Synfuels has developed a unique process for transporting ethylene resulting from its GTL process research.

Synfuels believes that significant opportunities exist for all the technologies referred to above and particularly for its GTL technology which is very cost effective. There is a large resource base of natural gas worldwide, some of which is stranded. Even where natural gas is not stranded, the current differential between the price of natural gas and the price of liquids may make Synfuels GTL process economically viable, such as in North America. Synfuels’ objective is to become a leading technology provider (particularly GTL) to the oil, gas and chemical industries.

Synfuels has licensed the GTA process exclusively in the lower 48 states of the United States. Synfuels and the sublicensee are working to jointly develop the GTA process commercially. Synfuels has also licensed its GTL process and the use of its single and two stage oligomerization process for the conversion of biomass to fuels, chemicals or distillates exclusively throughout the world. This sublicensee is particularly interested in producing biojet fuel.

Synfuels is in the process of offering licenses to its technologies where exclusivity has not already been granted. Synfuels’ emphasis is on licensing its GTL process throughout the world. Synfuels has partnered with AREF Energy Holding Company to promote and license its GTL process particularly in the Middle East.

To support its licensing efforts, Synfuels also intends to establish relationships with oil, gas, and chemical industry leaders, engineering companies and manufacturers of critical components to facilitate the design and construction of GTL systems by licensees. Synfuels expects some of its major customers for licensing GTL systems to be energy companies and foreign countries worldwide with significant stranded natural gas reserves that cannot be economically marketed and are therefore generally shut-in, flared or re-injected. Synfuels believes that these potential licensees will significantly enhance the value of their reserves by using the Synfuels GTL process to convert their natural gas into liquids that can be economically marketed.

Synfuels believes that support of its licensees both before and after they have executed a license agreement will be critical to facilitate the development of projects, particularly GTL projects. Synfuels intends to provide support through its engineering team and other engineering companies and component manufacturers strategically aligned with Synfuels. Synfuels’ engineers and business development managers will establish relationships with its licensees as they move through the process of developing and deploying the Synfuels technology. Mr. Allen Richmond is assisting Synfuels in its licensing business. Mr. Richmond retired from Phillips Petroleum Company where he was Manager, Patents and Licensing. He has over 30 years experience in licensing and intellectual property issues relating to the petroleum and petrochemical industry.