Green House Gas Blog’s Interview with Michael Hepworth

Posted by ghgblog on 9 September, 2008

GHGblog is interviewing Michael Hepworth, the VP of Business Development for Alternative Fuels Corporation in Toronto, Canada. Alternative Fuels Corporation, (a G4G Resources Company TSX-V: GXG), is dedicated to converting natural gas, biomass and ultimately coal to cleaner and greener and more reliable synthetic gasoline, diesel and jet fuel.

The technology has been developed by The Centre of Materials and Process Synthesis at the University of Witwatersrand in South Africa, (Wits COMPS), is a new generation of Fischer Tropsch Technology. This technology can be applied in both Gas to Liquid (GTL), Coal to Liquid (CTL) as well as Biomass to Liquids (BTL). The technology offers reduced CO2 emissions, reduced capital and operating costs as well as simplicity of operation and ease of scalability.

Q1: GHGblog.com: Could you explain how the technology converts hydrocarbons in this case municipal waste and stranded natural gas to liquid fuels?

The Fischer-Tropsch (FT) Process converts a mixture of carbon monoxide (CO) and hydrogen (H2) to hydrocarbons. The carbon monoxide and hydrogen mixture (referred to as synthesis gas) can be obtained from coal, natural gas or biomass.  Synthesis gas is versatile in that it can be used to produce not only hydrocarbons (mainly liquid fuels) but electricity and other chemicals (methanol, ammonia) as well.

The Fischer Tropsch reaction takes place in the presence of a catalyst, usually iron or cobalt.  The temperature, pressure and catalyst determine the range of product. Fischer Tropsch can be operated in two modes: high-temperature (300 -350°C) process with iron-based catalysts or low-temperature (200 - 240°C) process with either iron or cobalt catalysts.

Q2: GHGblog.com: What are the main uses of the liquid fuels?

Right now there is no commercially viable alternative for liquid fuels in the transportation sector.

The Fischer Tropsch process produces high value, clean-burning fuels.  FT fuels can be used in conventional engines with no modification and have improved combustion which reduces emissions. The resulting fuels are colorless, odorless and low in toxicity.   FT fuels have less sulphur, nitrogen oxide, carbon monoxide and particulate matter emissions than petroleum fuels.

Markets of particular interest are fuels for diesel engines and jet fuels.

Q3: GHGblog.com: How do you see your technology reducing GHG emissions?

Our technology offers reduced CO2 emissions, reduced capital and operating costs as well as simplicity of operation and ease of scalability.

This design is the result of an application of the process synthesis and optimization methods developed at COMPS and collaboration with other world leaders in the field.  These methods were used to identify and systemically reduce or eliminate the inefficiency present in the process. Much of the CO2 produced in traditional FT plants is as a result of process inefficiencies. This technology enables us to smaller build plants that can handle municipal waste and biomass. With biomass it is possible that our plants will be carbon neutral.

Q4: GHGblog.com: Have you thought about, which carbon credit markets this technology would be suited to?

We have yet to investigate this aspect of the business, but it is our intention to take full advantage of this opportunity to build plants that qualify for carbon credits.

The opportunities we are actively seeking are joint ventures with project owners who have access to large amounts of municipal waste, pulp and paper industry waste and stranded natural gas.

We expect these to be in all markets around the world.

Q5. GHGblog.com: Are there other markets, not just carbon markets that the technology would naturally be suited to broader energy markets for example.

This is an energy company first and foremost, but we take our social responsibility seriously and want to focus on cleaner and greener opportunities where possible.

Q6: GHGblog.com: What is the cost of the technology?

This is difficult to answer as it is dependant on many factors; however we expect small plants to cost around $150,000,000

Q7: GHGblog.com: How does it compared to other methods of converting hydrocarbons to liquid fuels?

We offer the following benefits to the public:

  • Production of gasoline, diesel, kerosene or chemicals as market conditions change
  • 20-30% less CO2 than competitive processes
  • Does not require the conversion of current vehicles
  • Does not require a change to delivery infrastructure
  • Can produce clean burning liquid fuels at very competitive prices
  • Does not compete with food
  • Raw materials are abundant and currently underutilized.

To investors the following benefits are important:

  • Relatively low capital cost at start up
  • Modular plants allow testing before scale up
  • Once tested scale up can be rapid
  • 20-30% less CO2 than competitive processes
  • Pilot plants operating in China and Australia
  • Internal rates of return of between 25 and 30% depending on the feedstock and scale of the plant.

Q8: GHGblog.com: Does this technology work with other technologies or it a stand alone solution?

A Fischer Tropsch plant is an integrated suite of technologies, including:

  • Gasification
  • Fischer Tropsch
  • Cracking

Q9: GHGblog.com: What stage of development is the technology?

This technology is based on 80 year old technology but these new developments are being piloted in fully scalable plants in Australia and China

Q10: GHGblog.com: Are you looking for further investment or customers?

We are definitely looking for both investors and for customers.

The kinds of customers we need are project developers with appropriate resources. i.e.

  • Municipal waste
  • Biomass waste
  • Stranded natural gas
  • Appropriate coal

We are also interested in joint venturing with technology suppliers who only supply parts of the overall process.

Q11: GHGblog.com: How do people contact you?

My contact details are:

Phone: 416-204-0352

E-mail:

The above information can be found at the following link:

http://ghgblog.com/2008/09/09/interview-with-michael-hepworth-alternative-fuels-corporation/

More information can be found at www.alternativefuelscorp.com