Fuel Oil News

Fuel Oil News June 2015

The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding

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SPRING LITERATURE SHOWCASE 2015 2 SPRING LITERATURE SHOWCASE 2015 | FUEL OIL NEWS | www.fueloilnews.com N atural Gas has long been a foe for heating fuels distributors—at least those not selling 3rd party residential gas service. Sacramento, Calif.-based Greyrock is looking to change that by using spe- cialized catalysts to turn natural gas and related feedstocks into a clean diesel fuel for transportation and heating. Gas-to-liquid technology aims to crack gaseous hydro- carbons such as natural gas and convert them into liquid fuels. The concept is not new, but has typically involved major facilities. Grayrock was founded in 2006 to focus on small-scale GTL. "We realize there is a place in the world for massive GTL, but spending $20 billion on these plants with seven-year build cycles is not for the faint of heart, and very few com- panies can make that happen," said Greyrock CEO Robert Schuetzle. "We focused on the exact opposite end of the spectrum—on small-scale modular plants that are great fit for a lot of the shale plays here in North America. We call it distributed gas-to-liquid versus centralized gas-to-liquid." Key to that distributed process was the development of a catalyst that can go directly from the intermediate product syngas into diesel fuel without going to a wax, and then having to refine that wax which as is the case with a tradi- tional the Fischer–Tropsch process. "With a traditional technology, as you scale it down to 2,000 barrels or 1,000 barrels a day the capital expen- ditures break down and your operational expenditures break down—you just can't shrink these things and do it the same way the big boys are doing it," said Schuetzle. "Developing this unique catalyst allows us a very simple technology package to directly produce a diesel fuel that is road ready and a true hydrocarbon fuel." The technology is moving forward. It has scaled up three times with commercial demonstration program that has run for two years in Toledo, Ohio. The company is now fabricating its first commercial units to be operational by the end of the year. The value proposition for a plant operator—and ulti- Turning Natural Gas into Diesel Greyrock's unique catalyst makes gas-to-liquid easier than ever BY KEITH REID

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