Headwaters Inc. Announces New Patent for
Advanced Catalyst
Business Editors/Energy & Environmental Writers
DRAPER, Utah--(BUSINESS WIRE)--Aug. 6, 2001--Headwaters Inc.
(Nasdaq: HDWR), Monday announced that Hydrocarbon Technology Inc.
("HTI") was recently granted a patent for an advanced iron-based
catalyst to be used in converting gas to liquids ("GTL").
HTI has succeeded in developing a catalyst that extends the life
and increases the selectivity of iron-based catalysts. Its unique
construction provides for greater surface area exposure and strength.
Iron catalysts are significantly less expensive than the competing
cobalt-based materials and will facilitate conversion to ultra clean
high energy fuels from a wide array of feedstock sources.
On May 2 of this year, Headwaters entered into an agreement to
acquire HTI. It is expected that all regulatory approvals and other
conditions to close will be met in August and the transaction will
then be able to close. However, no assurance can be given that the
transaction will close if the closing conditions are not met.
If the transaction does not close, Headwaters will not have access
to the intellectual property developed by HTI.
Al Comolli, chief executive officer of HTI, stated, "The
successful development of our unique iron-based catalyst allows us
entry into the GTL market place. We have been working on our catalyst
for several years and are pleased that our patent has been granted.
The technology is an innovative application of our knowledge of how
catalysts are formed and how they function in the GTL environment.
"We have commenced working on the implementation of the technology
and we look forward to working with Headwaters in its commercial
deployment."
GTL technology can be used to produce high-value ultra-clean
gasoline, diesel fuel and lubricants from low-value alternative fuel
resources such as stranded natural gas, coal, tarsands, biomass and
refinery still bottoms. There are several companies involved in
commercializing GTL technology including: Exxon, BP, Sasol, Conoco,
Rentech and Syntroleum.
Using low-value alternative fuel resources, GTL could be used to
supply a major portion of the world's current demand for liquid
petroleum products. For example, it is estimated that GTL technology
will enable the development of stranded gas reserves, which are
estimated at more than 4,000 trillion cubic feet. This represents
about 80 percent of all known gas reserves worldwide.
GTL has the potential of producing more than 11 million barrels
per day of liquid petroleum products.
"We are extremely excited about the many opportunities that HTI
gives us to expand. HTI has the engineering and scientific competence
that allows us unprecedented opportunities to grow our business in
adjacent markets.
"The GTL market is huge and we intend to fully investigate
implementation of HTI's catalyst to provide us with sources of
additional revenue and income," said Kirk A. Benson, CEO and chairman
of Headwaters Inc. |
