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Technology Stocks : SLH Corp. (SYNM) - From natural gas to crude oil -- Ignore unavailable to you. Want to Upgrade?

To: Tokyo VD who wrote (58)	2/25/1998 6:07:00 PM
From: ForYourEyesOnly	Respond to of 281

Energy Biosystems: Technology overview follows.... BIOREFINING AND BIOCATALYTIC DESULFURIZATION Biorefining is the use of biological systems to perform petroleum refining processes typically accomplished by conventional catalytic systems at high temperatures and pressure. The mild operating conditions and environmentally benign byproducts of biorefining systems offer cost-effective, clean technologies to the petroleum industry. Biocatalytic desulfurization (BDS) is the first application of biorefining technology. In BDS, enzymes selectively break carbon-sulfur bonds without degrading the fuel value of the petroleum product. The process operates at mild temperatures and atmospheric pressure and is flexible enough to desulfurize a wide range of petroleum streams including diesel, gasoline and crude oil. Researchers have attempted to use microbes for desulfurization since the late 1940s. These early efforts failed primarily because the microbes degraded the value of the hydrocarbon in addition to removing the sulfur. The systems were not selective for sulfur alone. In 1988, DOE-sponsored researchers achieved a breakthrough in microbial desulfurization when they isolated two unique strains of bacteria. These strains had the ability to selectively desulfurize fossil fuels. U.S. patents were issued on the two strains in 1991 and 1992. In 1991, Energy BioSystems obtained the exclusive worldwide rights to these microbial strains. A critical milestone was achieved in 1992 when the relevant genes from the patented bacteria were cloned and sequenced. These genes now have been extensively characterized and the Company has U.S. and foreign patent awards and applications on them. The cloned genes now are being manipulated and transferred to alternative microbial hosts and modified to increase expression of the desired properties. In late 1992, the Company initiated operations of a continuous bench-scale unit capable of desulfurizing up to one-half barrel of oil per day. A fully integrated desulfurization pilot plant, capable of processing up to five barrels per day, was completed in late 1994. This pilot plant is generating extensive data which will be used to optimize and scale up the BDS process for diesel fuel to commercialization. This data will also be used to guide and accelerate further development of Energy BioSystems' other BDS applications for crude oil and other petroleum products. [Image] --------------------------------------------------------------------------- BDS PROCESS SCHEMATIC [Image] The basic steps of the process are as follows: 1. Biocatalyst is combined with water and transferred to the bioreactor. 2. The biocatalyst slurry and high-sulfur petroleum feedstock are mixed with oxygen in a continuous stirred tank reactor. 3. The desulfurized petroleum is separated from the aqueous/biocatalyst output stream. 4. The aqueous phase is further treated to separate the biocatalyst and water. 5. The sulfur byproduct is removed from the process in the aqueous phase as sulfate, which can be disposed of as sodium sulfate (salt water) or ammonium sulfate (a fertilizer), depending on local conditions. 6. The biocatalyst/water mixture is recycled to the bioreactor after spent biocatalyst is removed. [Image] --------------------------------------------------------------------------- CONVENTIONAL DESULFURIZATION Hydrotreating is the conventional technology for the removal of sulfur, nitrogen and other impurities from oil. When this process is used primarily for desulfurization, it is called hydrodesulfurization (HDS). In this process, petroleum fractions are subjected to high temperatures and pressure in the presence of an inorganic catalyst and hydrogen. As a result, organic sulfur is converted to hydrogen sulfide, which is further processed to yield elemental sulfur. HDS is most cost effective on lighter-sulfur compounds in lighter-end petroleum fractions. HDS is a costly process for refiners. A typical HDS unit costs $50 - 80 million to construct, depending on the product stream to be treated, the level of desulfurization required and the unit size. The high pressure and temperature required for HDS translate directly into high capital and maintenance costs because these units require high-pressure vessels and exotic metals that are expensive to manufacture and maintain. Although some refinery units produce hydrogen, the large amount of hydrogen required for HDS may require refiners to build new hydrogen production capacity at an additional significant capital expense. [Image] --------------------------------------------------------------------------- BIODESULFURIZATION ADVANTAGES BDS can be used in conjunction with, or instead of, HDS and offers the petroleum industry several key benefits over HDS alone: * Capital cost savings of approximately 50 percent * Operating cost savings of 10-20 percent * Flexibility to handle a wide range of petroleum streams * Safer, milder operating conditions * More rapid engineering and construction time (12-18 months versus 24-36 months) [Image] --------------------------------------------------------------------------- BDS OPPORTUNITIES [Image] [Image] --------------------------------------------------------------------------- BDS PRODUCT OFFERING BDS will be offered to refiners as a turnkey package consisting of design, engineering, start-up, supply, and service. The refiner will be charged an up-front site license fee and an ongoing per-barrel processing fee based on sulfur removal. Energy BioSystems will be supported in this offering through alliances with The M.W. Kellogg Company and Petrolite Corporation, both of which are internationally recognized suppliers to the petroleum industry. The M.W. Kellogg Company will provide the basic engineering design packages for commercial BDS units and is assisting Energy BioSystems with scale-up engineering resources. Petrolite Corporation will provide field service for commercial BDS units and is working with Energy BioSystems on the development of BDS process, including operation of the diesel BDS pilot plant. To commercialize BDS, Energy BioSystems must improve the productivity of the biocatalyst to a competitive economic level and develop an engineered bioreactor system that allows the control of key process parameters for optimum desulfurization. The Company has conducted extensive research, development and testing of the biocatalyst and bioreactor and has assembled a team of scientists and engineers with extensive experience in bioprocess development and scale up. The key issues in improving biocatalyst productivity are the specific activity of the biocatalyst (amount of sulfur a gram of biocatalyst can remove in one hour), the longevity (active life of the biocatalyst) and the yield of the fermentation process used to manufacture the biocatalyst. The key issues in engineering the BDS process are reactor unit design, separations (oil, water, biocatalyst), byproduct disposition, and product quality. Although Energy BioSystems' process development will first be directed toward biocatalytic desulfurization, the Company's long-term plan is to expand the capabilities of its technology to address the removal of other petroleum impurities (e.g. nitrogen and metals), to address other refining processes (e.g. viscosity reduction) and to remove sulfur from coal.