US Navy Testing Syntroleum for Application in Fuel Cells

Monday, October 9th 2000, 12:00 am
By: News On 6

TULSA, Okla. -- Syntroleum Corporation (Nasdaq: SYNM) announced today that it has produced and shipped synthetic fuel made to JP-5 specifications, under a purchase order from the Naval Surface Warfare Center Crane Division, under sponsorship from US Navy Office of Naval Research (ONR). The Navy project is to explore alternative fuels for fuel cell applications, in this case a synthetic version of a navy logistics fuel JP-5. The synthetic JP-5, designated S-5 by Syntroleum, will be tested in a fuel cell system manufactured by IdaTech Corporation, which is conducting the tests for the Navy. Syntroleum fuels contain virtually no sulfur, aromatics or metals. The absence of these contaminants enables simplification of fuel cell design, which reduces operating costs and size.

Previous tests of similar Syntroleum synthetic fuels in IdaTech Corporation (formerly Northwest Power Systems) fuel cell systems demonstrated performance that met or exceeded that of conventional petroleum fuels. Greater hydrogen density for the synthetic fuels was manifested by a significant increase of hydrogen yields from the reformers to produce 4% to as much as 11.6% more electricity than from conventional fuels.

"These tests should further underscore the benefits of ultra-clean fuels made from natural gas with Syntroleum technology. They also highlight the opportunity to design fuels with the purity required for new energy technologies such as fuel cells," said Mark Agee, Syntroleum president and chief operating officer.

Syntroleum Corporation licenses its technology for the conversion of natural gas into synthetic liquid hydrocarbons. Current licensees include ARCO, Enron, Ivanhoe Energy, Kerr-McGee, Marathon, Repsol-YPF, Texaco and the Commonwealth of Australia. The company is also working with DaimlerChrysler, General Motors and Volkswagen on the testing of super-clean synthetic fuels.

This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, statements relating to the testing, certification, characteristics and use of synthetic fuels and alternative fuels, the Syntroleum Process and related technologies and products. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan", "should," and similar expressions are intended to be among the statements that identify forward-looking statements. Although Syntroleum believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that commercial-scale GTL plants will not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants will experience technological and mechanical problems, the potential that improvements to the Syntroleum Process currently under development may not be successful, the impact on plant economics of operating conditions (including energy prices), construction risks, risks associated with investments and operations in foreign countries, the ability to implement corporate strategies, competition, intellectual property risks, Syntroleum's ability to obtain financing and other risks described in the company's filings with the Securities and Exchange Commission.

(R) "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office. SOURCE Syntroleum Corporation