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Press Release
23 January, 2008
Synfuels International, Inc. announces AREF partnership.
KUWAIT CITY - 23 January, 2008 - Synfuels International, Inc. (Synfuels), the leading developer of Gas-to-Liquids (GTL) and Gas-to-Ethylene (GTE) technology, announces a partnership with AREF Energy Holding Co. a listed shareholding company on the Kuwait Stock Exchange.
AREF Energy has acquired a major equity stake in Synfuels and has been awarded exclusive marketing rights in the Arabian Gulf region and several countries outside the region. Worldwide there is potential demand for more than 3000 Synfuels GTL and GTE plants which have the potential to earn Synfuels and AREF Energy several billion dollars in revenue annually.
With oil prices reaching records and increased concerns about the global environment, this partnership comes at an ideal time for both Synfuels and AREF Energy. Synfuels offers oil producers such as Kuwait Petroleum Corporation, a revolutionary and patented solution for the economic conversion of natural gas into clean burning automotive and aviation fuel. This technology helps eliminate major sources of pollution through reduced toxic gas flaring in the production field and on the roads by providing clean burning fuel.
Synfuels plants are certified to earn Carbon Credits for petroleum producers by eliminating or reducing green house gas emissions at the source. The World Bank estimates that at least 150 billion cubic meters (or 5.3 trillion cubic feet) of natural gas are being flared and vented annually. It is also estimated that global gas flaring releases about 400 million tons of CO2 per year into the atmosphere. (ref; World Bank; Global Gas Flaring Reduction Partnership GGFR )
A fully functioning Synfuels Gas-to-Liquid plant is currently in operation in USA. It was developed and patented in co-operation with the world's leading chemical engineering school; Texas A & M University.
The small physical size of Synfuels plants allows the capture of gas in the field and immediate conversion to clean burning fuel.
Synfuels GTL plants convert natural gas into ethylene or to clean burning automotive or aviation fuel in three simple, patented steps without producing any toxic by-products. The outdated and more costly Fischer-Tropsch GTL processes currently being implemented in Qatar, cannot be adapted to solve flaring problems and also produces significant unwanted and toxic by-products.
Synfuels Gas-to-Liquid (GTL) can increase the output of most oil wells while helping to reduce harmful emissions. Synfuels Gas-to-Ethylene (GTE) can produce valuable ethylene directly from natural gas. This process, when applied to smaller, uneconomical stranded gas fields can sustain local economies through the downstream production of plastics and textiles. It is estimated there are 4,500 trillion cubic feet of stranded natural gas around the world with the potential of creating several hundred billion barrels of oil equivalent.
Synfuels is now accepting commercial orders for applications worldwide. GTL plant deliveries can be achieved in as little as 21 months.
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Synfuels GTL plants are small and efficient. They can be portable or built in modules for ease of installation. Also, they can be positioned in production oil fields or in very remote locations.
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Synfuels gasoline is a clean burning fuel.
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| FOR IMMEDIATE RELEASE |
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MEDIA CONTACT:
David Margulies, david@prexperts.net
Bryan Matthews, bryan@prexeperts.net
214-368-0909
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Dallas Firm Can Bring New Energy Sources to Market
Large Equity Investment from Kuwait Announced Today
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DALLAS, TEXAS - January 9, 2008 - Just as oil is reaching the $100 per barrel mark, Dallas-based Synfuels International, Inc. announced a transaction, which will make it practical to produce millions of barrels of new petroleum products and help reduce sources of global warming.
Aref Energy Holding, a listed company in the Kuwait stock market with capital of $300 million and a subsidiary of Aref Investment Group with capital of $3.0 billion, has acquired a 15 percent stake in Synfuels International and its patented and revolutionary gas-to-liquids (GTL) technology. The deal includes plans to build the first commercial GTL plant based on the new technology, which converts natural gas to liquid petroleum products such as clean burning, affordable high-octane gasoline or other valuable and useful hydrocarbon products. A large scale demonstration plant has operated successfully near Texas A&M University since 2005.
"According to the World Bank, 5.3 trillion cubic feet of natural gas is wasted annually by either flaring or being vented," said Ben R. Weber, Chairman and CEO of Synfuels International. "That is equivalent to 25 percent of the United States annual gas consumption or 30 percent of the European Union's gas consumption. In addition, another 4,500 trillion cubic feet of natural gas is stranded, meaning that it is not located near a pipeline. Synfuels technology makes it possible to profitably convert this natural gas to gasoline and diesel that can be transported in existing pipelines or by truck."
"The idea for converting natural gas to a liquid has been explored for a number of years. Many organizations have attempted to perfect the process, but until now, none have achieved the conversion at a commercially viable level," said Tareq Al Wazzan, CEO of Aref Energy Holding. "With this cutting-edge and completely scalable technology, Synfuels has proven that they can make dramatic changes in our ability to utilize millions of cubic feet of natural gas."
"Synfuels has been approached by a number of investors from various parts of the world and especially the Arab Gulf countries," added Charles Matar, Vice President of International Marketing. "Having many reputable companies interested in acquiring equity in Synfuels is very encouraging. However, selecting a strong and active partner such as Aref Energy was a priority for us."
Through an idea conceived by Dr. Kenneth R. Hall, PhD, and his colleagues, and a preliminary research and demonstration plant funded by Texas A&M University, the technology that has ultimately accomplished this conversion is the patented Synfuels technology. In contrast, previous technologies which have relied upon the Fischer-Tropsch process have been proven not to be economically viable. The Synfuels technology breaks free of these industry standards and focuses on efficient high-temperature natural gas conversion into acetylene, which is then converted into ethylene at moderate pressures and temperatures. By passing the ethylene through a catalytic reactor, it is finally converted into products such as gasoline. And as a result, the Synfuels yield of usable products is significantly higher than a traditional Fischer-Tropsch plant.
"This new process was first discovered as I was working with my colleagues on how we might be able to dispose of lube oil waste in an environmentally-friendly manner," said Dr. Hall. "During our research and experimentation, we saw that it was possible to convert natural gas to acetylene, which could then be converted to ethylene. And the beauty of the formula for the conversion is that every step has been verified by outside experts as both scalable and possible on a commercial level."
By successfully achieving the conversion, Synfuels International and Aref Energy Holding are now able to expand the process into a pioneering commercial-level plant. The new facility, once completed, will have the capabilities to produce high-octane fuels, which may be used to power any motorized vehicle including aircraft and automobiles, with only the need to flare a small amount of gas to remove nitrogen from the process stream.
"This is undoubtedly the world's first breakthrough for a gas-to-liquids refinery," concluded Thomas R. Rolfe, President of Synfuels International. "By cultivating these untapped resources, we will not only be able provide the world with a cleaner energy solution producing virtually no unwanted bi-products, but we will also be able to stimulate local economies where we have identified these natural resources to be available. It is truly a new day and we are thrilled to be leading the way."
ABOUT SYNFUELS INTERNATIONAL, INC.
Founded in 1998, Synfuels International, Inc. believes that a significant opportunity exists for the use of cost-effective GTL systems due to the large resource base of natural gas worldwide and the large volume of natural gas that is currently stranded. Synfuels' objective is to become the leading GTL technology provider to the oil and gas industry.
ABOUT AREF INVESTMENT GROUP
AREF Investment Group S.A.K.C. is a Kuwait-based shareholding company engaged in investment activities and services in local and international markets. The Company's activities include direct investments through its affiliates and subsidiaries in various sectors, such as energy, education, health services and information technology, in addition to its other services in the financial sector, which include portfolio management, asset management, corporate finance, funds, real estate investments and consultancies. The Company is a subsidiary of Kuwait Finance House and has subsidiaries and associates within Kuwait and abroad. The Company is listed on Kuwait Stock Exchange.
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