VLS.L Regulatory News (VLS)

8 Jul 2008 07:00



8th July 2008

OXFORD CATALYSTS GROUP PLC

 ("Oxford Catalysts" or "the Company")

Agreement Signed for Small Scale Fischer-Tropsch 

Highlights

MOU with leading small scale FT developer, following months of rigorous testing

Addresses potential market of over 4 million barrels of oil equivalent per day

Catalyst demonstrated: 10+ times more productive than conventional FT catalysts

2008 development revenue expected to exceed US$200,000; prospect of significant licensing income thereafter, as technology takes hold in market 

Major catalyst company working on manufacturing scale-up

Oxford Catalysts Group PLC, the leading catalyst innovator for clean fuels, is pleased to announce that it has entered into a memorandum of understanding ("MOU") with a specialist technology developer ("Technology Partner") for the deployment of the Company's proprietary catalysts in small scale Fischer-Tropsch ("FT") applications, such as the conversion of bio-waste or flare gas into synthetic liquid fuels − a potential global market of over 4 million barrels of oil equivalent per day.

FT catalysts are used in the process of converting natural gas, coal or bio-mass into clean-burning liquid fuels, such as sulphur-free diesel (known as the GTL, CTL and BTL processes respectively). However, conventional FT technologies have been unable to scale down cost-effectively to date. 

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, such as that provided by the Technology Partner, these catalysts hold the promise of delivering cost-effective small scale FT applications, at anything from 500-5,000 barrels of synthetic fuel per day. 

The MOU was signed following months of rigorous testing of the Company's high activity FT catalysts by the Technology Partner, which included successful demonstration for over 1,000 hours in a one gallon per day pilot unit. The agreement contemplates 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 from this MOU are estimated to be at least US$200,000 during 2008, and increasing in 2009 (pending successful trials). The project could ultimately lead to large volume supply of FT catalyst for commercial deployment through a third party manufacturer. The Company 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, Chief Executive of Oxford Catalysts 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." 

- Ends -

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Notes to Editors

Oxford Catalysts Group PLC, the leading catalyst innovator for clean fuels, designs and 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 built on almost 20 years of research at the University of Oxford's prestigious Wolfson Catalysis Centre, headed by Professor Malcolm Green, one of the world's most respected inorganic chemists. Oxford Catalysts was founded by Professor Green and Dr Xiao in October 2004.

Oxford Catalysts' strategy is to license its catalysts for commercial application by entering into co-development partnerships with leading manufacturers, producers and suppliers in the petroleum, petrochemicals, biogas, steam applications and catalysis markets.

Oxford Catalysts has two key platform technologies. The first is for a novel class of catalysts incorporating metal carbides, which can match or exceed the benefits of traditional precious metal catalysts, at a lower cost, for several key processes used in the petroleum and petrochemical industries. Applications of these metal-carbide catalysts include the removal of sulphur from crude oil fractions (known as hydro-desulphurisation or HDS), the conversion of natural gas, coal or bio-mass into virtually sulphur-free liquid fuels via the Fischer-Tropsch reaction (known as the GTL, CTL and BTL processes respectively), and the transformation of biogas (waste methane) into syngas − the building block of liquid fuels.

The second platform relates to a unique chemical reaction which can be used to generate steam at temperatures between 100ºC and 600ºC+, instantaneously, starting from room temperature, using a cheap liquid fuel alongside the Company's patented catalysts. Such unprecedented Instant Steam could have important applications in a broad range of markets, from cleaning and disinfecting, to green energy in the form of motive power or electricity.

Oxford Catalysts Group PLC is listed on London's AIM market (coding symbol OCG). 

www.oxfordcatalysts.com