ConocoPhillips & Fluor Form Gasification Technology Alliance

ConocoPhillips and Fluor Corporation have signed a worldwide alliance agreement to facilitate the development, design and construction of new projects utilizing ConocoPhillips' E-Gas Technology. Under the agreement, Fluor and ConocoPhillips will cooperate to provide comprehensive offerings for the licensing, development, engineering, procurement, construction and operations and maintenance of integrated gasification facilities for production of a wide range of energy and chemical products. The terms of the agreement were not disclosed.

The E-GAS Technology incorporates a unique, proprietary gasification system design which can be applied with gas turbine and steam power generation in an advanced Integrated Gasification Combined Cycle configuration to produce electric power, as well as co-producing synthesis gas, hydrogen and steam in highly flexible combinations. It is among the cleanest, most efficient commercial technologies for coal- or petroleum coke-based electric power generation, offering high-system efficiencies, lower costs and very low emissions, when compared with conventional pulverized coal-based power generation. Gasification also can provide a low-cost alternative to natural gas reforming to create synthesis gas for refinery hydrogen, synthetic liquid fuels and chemicals production.

Through the alliance, ConocoPhillips and Fluor have combined to provide E-Gas Technology customers both project development support for planned projects, conceptual and detailed engineering and turnkey contracts for construction of solid fuel gasification facilities.

"The alliance with Fluor is our first step in building a powerful team to promote the use of the E-Gas Technology," said Brian Evans, manager, ConocoPhillips Technology Solutions. "ConocoPhillips' extensive experience in gasification and in technology licensing, combined with Fluor's leadership in the project development, financing, engineering and construction of both process plants and combined cycle facilities, makes this a natural combination to supply the environmental and efficiency benefits of gasification to the refining, power generation and chemical industries."

E-GAS Technology converts coal and other low-grade feedstocks, including petroleum coke, which may have a negative economic value, into a clean synthesis gas containing hydrogen. The process allows virtually all pollutant-forming impurities to be removed, including mercury from coal, and is readily adaptable for further removal of carbon in the future. Carbon dioxide is suspected to be a leading agent in global warming.

"Fluor is pleased to join with ConocoPhillips to provide our customers with advanced technology solutions for converting solid fuels to clean and cost-effective energy and chemical products based on the E-Gas Technology," said Jeff Faulk, president of Fluor's Oil, Gas & Power group.

The Wabash River Coal Gasification Repowering Project, in West Terre Haute, Indiana, has been demonstrating the technology on a commercial basis since 1995. A leader in the U.S. Department of Energy's "Clean Coal Technology Program," the Wabash River Plant has gasified over three million tons of coal and petroleum coke over the past eight years and can operate interchangeably on either fuel.

Fluor and ConocoPhillips also are preparing a structure to provide operating and maintenance agreements for gasification facilities utilizing the E-Gas Technology, drawing from the extensive collective experience of the two companies.