G4G Resources launches alternative fuels subsidiary

Web exclusive posted Sept. 9, 2008 at 4:09 p.m. CST

G4G Resources, a Canadian-based mineral exploration and development company focused on alternative fuels and iron ore, has announced the incorporation of wholly-owned subsidiary Alternative Fuels Corp.

Initially, Alternative Fuels will focus on developing small-scale plants for the production of synthetic fuels from municipal waste and stranded natural gas using a new generation Fischer Tropsch technology developed by the Center of Materials and Process Synthesis at the University of Witwatersrand in Johannesburg, South Africa. In mid-August, G4G Resources signed an agreement with the university to use the technology and collaborate towards the commercialization of the syngas to liquid process.

The Fischer Tropsch technology, originally developed in Germany in the 1920s, involves a catalyzed chemical reaction in which syngas, a mixture of carbon monoxide and hydrogen, is converted into liquid hydrocarbons of various forms. It was used to produce liquid fuels in Germany on a large scale throughout the 1930s and 1940s. Since 1955, it has been used in South Africa to produce 30 percent of its liquid fuels.

Basil Botha, president and chief executive officer of G4G Resources, said the problem with the traditional Fischer Tropsch process is that it's costly, produces great volumes of carbon dioxide, and requires investors with very deep pockets. "But now, that has changed," he said. The updated technology costs considerably less than the traditional Fischer Tropsch plants, due to modular design techniques, he added. The equipment, machine components and modules are constructed and pre-assembled, then transported in larger parts to a final destination for a quicker assembly process.

"Once the plants are constructed and operating, they can be quickly scaled up by simply adding additional modules, resulting in increased production capacity," Botha said. The new application produces 30 percent less carbon dioxide, and by using biomass may have the potential to be carbon neutral. "More importantly, the fuel produced is free of sulfur, particulates and nitrous compounds," he said.