Automated Transfer Systems Corp. Announces Agreement with Renaissance Energy Ltd. to Develop Cold Fusion Gas-to-Liquids Technology

Strategic Insights -

Automated Transfer Systems Corp. (ATNY), a Colorado-based company, has announced a significant partnership with Renaissance Energy Ltd., a major oil and gas producer in Canada, to develop and commercialize a groundbreaking technology that converts stranded natural gas into clean-burning petroleum fuels. This innovative approach, pioneered by Carbon Resources Limited, a subsidiary of ATNY, holds great potential to mitigate the environmental impact of natural gas emissions and could generate a substantial revenue stream for the company and its global licensees.

Key Takeaways:

  • ATNY's subsidiary, Carbon Resources Limited, has signed an agreement with Renaissance Energy Ltd. to develop and commercialize the cold fusion gas-to-liquids technology.
  • The agreement will lead to the construction of a demonstration plant in Alberta, Canada, utilizing CRL's proprietary technology.
  • Renaissance Energy Ltd. will provide the stranded gas well for construction and testing, assist CRL with regulatory requirements, and may consider licensing the technology for use at selected gas wells in Alberta.
  • The plant is expected to be completed in April 1999, with Bower Damberger Rolseth Engineering Ltd. responsible for engineering.
  • The technology's market potential is estimated at over $175 billion USD annually, as it reduces natural gas emissions and minimizes the greenhouse effect.
  • Renaissance Energy Ltd. had revenues of $790 million and net income of $115 million in fiscal 1997.
  • ATNY owns a 75% interest in Carbon Resources and is headquartered in Calgary, with offices in Houston, London, and an R&D affiliate in Orleans, France.
  • The agreement is subject to favorable test results, and additional information can be found in the company's Private Placement Offering Circular, dated August 10, 1998.

Statistics:

  • $175 billion: Estimated annual market potential of the gas-to-liquids technology aimed at reducing the greenhouse effect (1)
  • $790 million: Revenues of Renaissance Energy Ltd. in fiscal 1997 (2)
  • $115 million: Net income of Renaissance Energy Ltd. in fiscal 1997 (2)
  • 300+: Number of oil and gas facilities built and managed by Bower Damberger Rolseth Engineering Ltd. over the last 15 years (3)
  • 75%: Interest owned by ATNY in Carbon Resources Limited (4)
  • April 1999: Expected completion date of the demonstration plant (5)

Sources:

  • (1) ATNY press release dated September 25, 1998
  • (2) Renaissance Energy Ltd. 1997 annual report
  • (3) Bower Damberger Rolseth Engineering Ltd. press release dated September 25, 1998
  • (4) ATNY press release dated September 25, 1998
  • (5) ATNY press release dated September 25, 1998