Energy and car companies join forces to push gas-to-liquid fuels
Tue 14 March 2006
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Car makers and international oil companies are actively investing in ‘gas to liquid’ technology (GTL), driven by the fuel's improved economics under a high oil price scenario.
According to the Financial Times, DaimlerChrysler, Renault and Volkswagen have teamed up with Shell and SasolChevron to form the Alliance of Synthetic Fuels in Europe.
GTL technology can create synthetic 'designer fuel' capable of delivering greater engine power, fuel economy and a quieter ride. It can use natural gas, coal or biomass as a feedstock to produce quality diesel and other products normally derived form crude oil.
The first commercial scale project will be opened shortly in Qatar. The Oryx GTL plant is a joint venture between South Africa's Sasol and Qatar Petroleum. Other oil companies including Shell and ExxonMobil are reported to be making making significant investments in GTL technology. According to Wood Mackenzie, more than $40 billion will be spent on GTL over the next ten years.
Analysts say that up to a million barrels a day of GTL products could be in use by 2015 compared with 80 million barrels a day of total oil production.
Japan is reported to want at least 20% of its transport fuel to be biodiesel or GTL by 2030. Meanwhile, the US Department of Energy is sponsoring the development of GTL-ready engines in the United States.
Related Links
FT stories link
SasolChevron press release
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