G4G Resources Forms Subsidiary Company to Produce Ultra-Clean Transportation Fuels Using the Fischer Tropsch Process
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 4, 2008) – G4G Resources Ltd. (TSX VENTURE:GXG) (“G4G”) announced the incorporation of a wholly owned subsidiary; Alternative Fuels Corporation (“AFC”).
AFC will work towards producing synthetic fuels from municipal waste and stranded natural gas using the new generation Fischer Tropsch technology developed by the Centre of Materials and Process Synthesis (COMPS) situated at The University of Witwatersrand in Johannesburg (“Wits”). The COMPS team has developed pilot plants for Linc Energy, Australia and Golden Nest, China.
Initially AFC will focus on opportunities where the ability to operate smaller scale plants will give it a competitive advantage and the opportunity to capitalize on underutilized hydrocarbon assets.
The Wits COMPS technology will enable AFC to compete with the following advantages:
– Lower capital cost than traditional Fischer Tropsch plants
– Quicker start-up due to smaller scale and modularity
– Rapid scalability
– Significantly lower CO2 output
– Lower requirements for water
– Produce cleaner burning fuel that is sulphur and particulate free and has no aromatics
“AFC has been incorporated to provide solutions to the current energy crisis the world finds itself in. Emerging nations require more energy and liquid fuels for transportation every day, but less oil is being produced and new discoveries are unlikely to keep up with rising demand. As the world comes to grips with peak oil, we expect prices at the pump to continue to rise,” said Basil Botha President and CEO of G4G Resources. “There is no single answer to the crisis and that the world will have to explore many solutions to avoid this crisis.”
The Fischer Tropsch process was invented in Germany in the 1920s, was utilised to produce liquid fuels on a large scale in the 1930s and 1940s, and has been successfully used since 1955 to provide South Africa with nearly 30% of its liquid fuels.”
“The problem with the traditional Fischer Tropsch process is it is expensive, produces large volumes of carbon dioxide and requires investors with very deep pockets,” continued Mr. Botha. “But now that has changed. The advanced Fischer Tropsch process developed by Wits COMPS has given Fischer Tropsch a new lease of life. The team of talented chemical engineers has found several ways to improve the process so that getting started only costs a fraction of traditional plants due to the modular design. Once the plants are constructed and operating, they can be quickly scaled up by simply adding additional modules, resulting in increased production capacity. This new application of Fischer Tropsch technology produces approximately 30% less carbon dioxide and may qualify for carbon credits. With biomass, the process may have the potential to be carbon neutral. The feedstock can be as varied as municipal waste, old tires, natural gas, flared gas from oil wells or coal, but more importantly the fuel produced is free of sulfur, particulates and nitrous compounds.
It is AFC’s intention to joint venture with partners who have access to stranded gas assets and municipal waste dumps in stable countries where energy security is paramount. The actual economic viability of any projects will be determined by future feasibility studies.
About G4G Resources
G4G Resources is a Canadian-based mineral exploration and development company focused on iron ore, iron production and alternative fuels.
On March 31, 2008, the Company announced the signing of an agreement with TCL Sweden Ltd., a wholly owned subsidiary of Teck Cominco Limited, for G4G to option eight mineral properties in the Norrbotten iron ore mining district of Sweden.
On July 7, 2008, G4G announced a joint venture with Iron Mineral Beneficiation Services (Pty) Ltd (IMBS) to establish joint ventures to utilize Finesmelt(TM) technology, a process which converts iron ore fines into high quality iron units.
On July 14, 2008, the Company announced the formation of a strategic partnership with Crusader do Brasil Mineracao Ltda., a wholly owned subsidiary of Crusader Holdings NL, under which the companies will work together to acquire iron ore fines in Brazil as feedstock for the production of saleable iron units.
On August 13th, 2008 G4G announced the signing of a memorandum of understanding (MOU) with University of Witwatersrand, Johannesburg, South Africa (“Wits”) to work towards setting up a joint venture company which will commercialize the syngas to liquids production process that has been developed by the Centre of Materials and Process Synthesis (COMPS) situated at The University of Witwatersrand.
On August 25, 2008 the Company announced an agreement with Magnetite Holdings SA (Pty) Ltd (“Magnetite Holdings”) which will allow the Company to acquire a 51% interest in Magnetite Holdings, a South African-based company with iron ore assets in Namibia. Initial work has been completed by Magnetite Holdings to produce a chemical grade iron catalyst for sale to coal, gas and biomass converters using the Fischer Tropsch (FT) process to produce ultra-clean diesel and gasoline.
COMPS is a research and consulting group within the University of the Witwatersrand and was founded in order to promote links between industry and the process synthesis research being conducted at the University. COMPS has established a strong international reputation for creative work and has achieved outstanding academic excellence as a result of their joint work in process synthesis.
History of the Fischer Tropsch Process
The Fischer Tropsch technology (“FT”) was originally discovered in the 1920s by German scientists and by 1938 Germany was running nine industrial plants which produced fuel from coal. In the 1950s, the South African Coal Oil and Gas Corporation (SASOL) commissioned an FT plant based on coal in Sasolburg, South Africa. Research on FT has continued ever since at SASOL. Due to the oil crisis of the mid 1970s SASOL constructed two much larger coal-based FT plants which came on-line in 1980 and 1982 respectively. These two plants produce approximately 160,000 bbl/day of fuel which supplies 28% of South Africa’s fuel requirements. Further commercial ventures, which have used natural gas as a feedstock, include Shell’s plant in Malaysia and PetroSA plant in South Africa. In the last few years the interest for FT has grown significantly due to the increase in as well as the high demand for energy. Recent commercial ventures include the development of Gas-To-Liquids (“GTL”) plant, Oryx GTL, in a joint venture of SASOL with Qatar Petroleum at Ras Laffan in Qatar.
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company’s 2007 Annual Report filed with SEDAR on April 23, 2008.
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