November 13, 2008
Project Intends to Construct World’s Largest, Most Efficient Synthetic Natural Gas Production Facility
C Change Investments announced today that one of its affiliates is acquiring an equity position in NC12, Inc. (formally Texas Syngas, Inc.). Russell Read, C Change Investment's CEO will join the NC12 Board of Directors.
NC12 has formed a joint venture with a to-be-named major utility to finance, construct and operate a synthetic natural gas production facility in Louisiana. More than half of the facility's production capacity has already been sold, with negotiations pending for the remainder. The project is projected to produce several hundred billion cubic feet of synthetic gas annually. A formal announcement is expected during the first quarter of 2009.
An innovative catalytic technology developed by NC12 will be used at the facility to convert coal and petroleum coke from oil refineries located in Louisiana into natural gas within a high-temperature, cylindrical reactor.
"This is a transformative technology with significant competitive and environmental advantages," said Michael Sydow, President and CEO of NC12. "A wide-range of carbon-based materials can be converted to synthetic natural gas and liquid motor fuels with very high efficiency and essentially zero emissions. This is a breakthrough in energy production from essentially unlimited domestic resources," he added.
NC12's technology is the result of an investment of millions of man-hours of research and development by leading scientists. The company has refined and demonstrated the technology to convert coal and other hydrocarbon materials into pipeline quality natural gas.
The project is expected to be constructed in three phases. The first will consist of ten reactors, producing 50 billion cubic feet (BCF) of natural gas per year with completion expected in just two years. The final phase will be completed within four years and increase production to 250 BCF - equivalent to 7% of today's US natural gas pipeline imports. NC12 expects the total capital cost of the project to be $3.5 billion.
In collaboration with NC12, C Change Investments will be involved in the project financing of this joint venture and other similar projects NC12 intends to pursue. "The modular nature of the technology allows for staged financing and expeditious manufacturing and construction. Unlike other large-scale, energy production facilities, this project will have its first phase in commercial production while its last phase is under construction. That's an advantage in any type of credit market condition," said Russell Read, CEO of C Change Investments.
The facility's high efficiency, operational availability and production capacity is expected to produce natural gas at less than half the cost of other current gasification technologies, which are still in the demonstration stage. NC12's production cost is anticipated to be equivalent to the wellhead production cost for natural gas out of the Gulf of Mexico.
It is expected that the three primary byproducts of the gasification process will be sold to commercial interests: carbon dioxide (CO2) will be delivered under pressure to enhance oil recovery in the Gulf area; sulfuric acid to chemical companies; and non-leaching slag (composed of impurities from the feed stock) for use as roadway asphalt filler.
If successful, the ability to capture and sequester carbon dioxide (a greenhouse gas associated with climate change) would make this project the first to accomplish this level of environmental integrity on a commercial scale and without the need for government subsidies.
"NC12 intends to develop other production facilities in strategic locations to serve the nation's increasing demand for natural gas. Several locations are under active consideration," said Michael Sydow. "The market for this technology in Europe is very significant and we will pursue opportunities there as well".
Further information can be found at www.cchangeinvestments.com and txsyn.com. Please note that the txsyn.com site is undergoing conversion. Some information may not accurately reflect the advanced technology referenced above.