December 21, 07
$2 Billion Coal to Gasoline Plant to be Built in Wyoming

DKRW Advanced Fuels has announced that it is achieving key milestones in the development of its $2 billion Medicine Bow Fuel & Power Project in Carbon County, Wyoming. The project, located near the town of Medicine Bow, is a facility to produce liquid transport fuels with an initial production capacity of 15,000 to 20,000 barrels per day of gasoline.

DKRW and ExxonMobil have executed a license agreement securing the rights to use the ExxonMobil methanol-to-gasoline (MTG) technology at the Medicine Bow site. The commercially proven MTG technology incorporates improvements since the process was originally commercialized by ExxonMobil 20 years ago in New Zealand.

The company has also recently been granted an Industrial Siting Permit by the Wyoming Department of Environmental Quality (DEQ). This is one of the most important permits required by the State of Wyoming because it demonstrates the state and local support needed to make this project move forward and the company's commitment to work together with the local communities. By granting this permit, the DEQ recognizes that the project will have no adverse socio-economic impacts.

The Medicine Bow Project will produce liquid transport fuels using coal as a feedstock. The company has an option to acquire underground reserves from the adjacent Carbon Basin Saddleback Hills mine from Arch Coal containing approximately 180 million tons of coal for the facility. The company also has secured a gasification license from GE to use the GE coal gasification technology. CO2 removed during the process will be compressed and marketed to the enhanced oil recovery market in Wyoming.

"This project uses our abundant domestic coal resources to bolster U.S. energy security," said Robert C. Kelly, Chairman, DKRW Advanced Fuels. "As oil prices push $100 per barrel, the U.S. needs to responsibly develop alternative energy sources to augment the declining production from U.S. oil and gas reserves and to help stem our growing dependence on imports."

The Medicine Bow Project has received strong support from local, state and federal officials. Carbon County approved the project's Conditional Use Permit and recently applied for and received a Business Committed Grant from the Wyoming Business Council to support road upgrades near the planned facility. The company is also working with the University of Wyoming's Enhanced Oil Recovery Institute to develop the state's enhanced oil recovery market.

DKRW also maintains a Site License Agreement and Master Site License Agreement to use the Rentech technology to produce Fischer Tropsch products, including diesel, at the Medicine Bow Site and at other locations worldwide.