Gas2 Announces £10 Million Investment Led by Lime Rock Partners
3/3/2008ABERDEEN, Scotland, March 3, 2008 — An innovative young Aberdeen company today announced a multi-million pound funding boost for its novel method of turning gas to liquid fuel.
Gas2 Limited, an independent technology company, has received the first tranche of a £10 million growth capital investment in the company.
The investment, which was made by Lime Rock Partners, a global energy-focused private equity firm, and a group of existing investors, will fund the further development of Gas2’s innovative technology.
With half of the world’s natural gas stranded in fields that make it either physically or economically unusable, the race is on to find a cheaper way of utilising the reserves.
And, since natural gas is much more expensive than oil to transport, converting it into liquid makes economic sense. Several major oil companies have already announced plans to build gas-to-liquid plants to produce low sulphur diesel.
Gas-to-liquids’ green credentials are further enhanced by the fact that the process can potentially be used to harness the billions of cubic metres of gas that are otherwise flared off into the atmosphere each year.
Founded in 2005 by chief executive Willie Reid, a chemist and process engineer, and fellow entrepreneur Mike Fleming, Gas2 is developing a portfolio of novel gas to liquids technologies which were originally conceived at the Robert Gordon University in Aberdeen.
The original development of the technology dates back to the 1920s when two German scientists invented the Fischer-Tropsch process for converting coal to liquids. However, it is only in recent years that high energy prices and sufficient technological advances have allowed its wide consideration for natural gas processing.
Gas2’s Willie Reid said, “The gas to liquids market is growing quickly with analysts predicting that tens of billions of dollars will be spent on this market during the next decade. We believe that our technology, once fully developed, will offer significant improvements in safety, efficiency and cost. We look forward to working with our new and existing investors to grow the company.”
Simmons & Co were financial advisers and Maclay Murray Spens were legal advisors to Gas2.
For more information on Gas2, please see www.gas-2.com. For more information on Lime Rock Partners, please see www.lrpartners.com.
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