TULSA, Okla., Jun 27, 2006 (BUSINESS WIRE) -- Syntroleum (Nasdaq:SYNM), a leader in Fischer-Tropsch
(FT) technology, announced today that it has signed a contract to
deliver 100,000 gallons of FT alternative fuel to the U.S. Department
of Defense (DOD). Syntroleum will provide the initial fuel for
evaluation by the DOD as part of a larger program aimed at long-term
prospects for the domestic manufacture and supply of synthetic
aviation fuels from FT plants. The government is currently seeking up
to 200 million gallons of alternative synthetic aviation fuel in 2008.
The ultra-clean fuel will be supplied from Syntroleum's existing
plant near Tulsa, Okla. and will be used for research and development
and performance testing of military turbine applications, highlighted
by a B-52 flight demo later this year at Edwards Air Force Base. To
learn more about the military's plan for testing the fuel, visit the
link to the U.S. Air Force Story,
http://www.af.mil/news/story.asp?storyID=123020290.
Previous research and testing by the military on Syntroleum's FT
fuels have shown superior performance characteristics compared to
aviation fuels produced by refining crude oil. Particulate matter
(PM), soot, emissions have shown a reduction of greater than 90
percent depending upon the turbine engine type. The reduced
particulate matter, soot and emissions significantly improve engine
efficiency, performance and overall air quality.
This agreement to supply the FT fuel for the evaluation and
certification process is the result of Syntroleum's more than four
years of research and development efforts with the DOD focused
specifically on producing a high performance alternative fuel for
military applications.
"The contract with the U.S. Department of Defense is a significant
milestone for Syntroleum," said Jack Holmes, president and CEO of
Syntroleum. "Not only are we the first company to provide FT aviation
fuel to the Department of Defense for its certification and weapon
system testing program, but, acceptance of our FT fuels further
validates the quality and integrity of our product. Equally important,
successful completion of this program provides Syntroleum with an
opportunity for other long-term supply contracts with the Department
of Defense.
"Additionally, the potential to produce these fuels from the vast
domestic coal resources and the opportunity for long-term supply
agreements with the DOD provides a mechanism for diversifying our
nation's energy supply and increasing domestic job growth."
Holmes added, "This announcement, directly on the heels of our
agreement with Sustec to begin design of Syntroleum's first commercial
coal-to-liquids plant, further strengthens and validates Syntroleum's
business model. Our technology and FT products have been extensively
tested and accepted by the U.S. government, private and academic
research institutions and auto manufacturers."
About Syntroleum
Syntroleum Corporation owns a proprietary process for converting
natural gas or synthesis gas derived from coal and other carbon-based
feedstock into synthetic liquid hydrocarbons. The company plans to use
its technology to develop and participate in natural gas and coal
monetization projects in a number of global locations. For more
information, visit http://www.syntroleum.com.
This document includes forward-looking statements as well as
historical information. Forward-looking statements include economics
of possible Fischer-Tropsch projects, development and economics of
upstream oil and gas projects and potential results for Syntroleum
shareholders, but are not limited to, statements relating to the
development of future Fischer Tropsch projects, testing, qualities and
uses of Fischer-Tropsch fuels, future programs with the United States
government or it various entities, ownership of intellectual property
rights, execution of definitive agreements, technology development and
market development. 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 failure to execute definitive
agreements, the potential that commercial-scale GTL or coal-to-liquids
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 and government support for such plants),
construction risks, risks associated with investments and operations
of GTL and coal-to-liquids plants, 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
Syntroleum Corporation, Tulsa
Mel Scott, 918-592-7900
mscott@syntroleum.com
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