A PILOT plant to validate the commercial viability of a gas to liquid (GTL) process has begun operating.

Gas2 chose to build the plant at the Wilton Centre, near Redcar, after gaining £5.5m funding to develop its ideas.

The company believes it can convert natural gas to liquid hydrocarbon (synthetic crude oil) more economically and cleanly than has previously been possible.

Mike Fleming, co-founder and managing director, said: “An extensive test programme is planned at the Wilton Centre over the course of the year.

“On a commercial scale, we expect the technology to drive up efficiencies, resulting in considerably lower capital and operational expenditure and a considerably smaller environmental footprint compared to other GTL technologies.”

Gas2 says its technology could:

  • transform the economic viability of smaller, more remote gas reserves as well as shale and unconventional reservoirs
  • offer a “gas disposal” solution for unwanted associated gas preventing flaring and enabling the development of remote oilfields where flaring is prohibited and /or gas re injection wells are expensive or detrimental to reservoir performance
  • gas conversion to alternative end products including gasoline, diesel, waxes, ammonia, methanol, hydrogen and ethylene for industrial use.

Mr Fleming said Gas2 had received outstanding support from all parties involved,including the Wilton Centre facilities management team.

He said: “For anyone developing new technology for the chemical engineering/ process engineering markets, Wilton Centre is a very attractive location.

“Not only has it considerable familiarity and experience in those fields but the local planning and regulatory agencies are keen to assist business.

“Furthermore, because the Teesside area has a long history of excellence in chemical engineering, it is a great place to recruit an experienced workforce – already this year, we have taken on a manager and five operatives, all of whom live locally.”