Oxford University spin-out seals catalyst deal

Licensing agreement

Oxford Catalysts Group plc, a specialist in the development of catalyst for the production of clean fuels, has announced an agreement with an unnamed technology partner for the deployment its proprietary catalysts in small scale Fischer-Tropsch (FT) processes for the conversion of bio-waste or flare gas into synthetic liquid fuels.

FT is a process for converting coal, natural gas or biomass into clean-burning liquid fuels, such as sulphur-free diesel.

Conventional FT technologies have been unable to scale down cost-effectively to date. Now Oxford Catalysts has developed high-activity FT catalysts that can operate at more than 10 times the productivity of conventional catalysts.

In combination with novel process technology, from the technology partner, these catalysts promise to deliver cost-effective, small-scale FT applications, at anything from 500 to 5,000 barrels of synthetic fuel per day.

The agreement was signed following months of rigorous testing of Oxford’s high activity FT catalysts by the technology partner. This included successful demonstration for over 1,000 hours in a one gallon per day pilot unit.

The agreement covers the supply of FT catalyst for demonstration units, ranging from several kilograms in 2008 to more than a tonne in 2009, with significant commercial volumes beyond, as the technology takes hold in this new market.

Initial development revenues to Oxford Catalysts are estimated to be at least $200,000 during 2008, and increasing in 2009. The project could ultimately lead to large volume supply of FT catalyst for commercial deployment through a third party manufacturer.

Oxford Catalysts says it has already identified, and is working with, a major catalyst company that is well suited to scale-up the manufacture of its FT catalysts.

Roy Lipski, CEO, said, “We are very excited about the potential for small scale FT applications, which include capturing flare gas, unlocking the vast reserves of medium sized stranded gas fields, and producing truly sustainable synthetic diesel from organic wastes. Global regulation and legislation is driving the need for small scale FT; we are very well placed to benefit from the inevitable demand.

“Our high activity FT catalysts could hold the key to opening this market, alongside novel technology for process intensification. We are pleased that in our technology partner we have found the leading process technology developer in this fast emerging field, with whom we shall be able to secure a significant market position.”

Oxford Catalysts develops specialty catalysts for the generation of clean fuels from both conventional fossil fuels and certain renewable sources such as bio-waste. Its patented technology is based on almost 20 years of research at Oxford University’s Wolfson Catalysis Centre, headed by Professor Malcolm Green.

The company’s strategy is to license its catalyst into co-development partnerships with leading manufacturers, producers and suppliers in the petroleum, petrochemicals, biogas, steam applications and catalysis markets.