SOURCE: Carbon Sciences Inc.
SANTA BARBARA, CA--(Marketwire - Sep 5, 2012) - Carbon Sciences Inc. (OTCBB: CABN), provider of a complete solution for transforming abundant and affordable natural gas into gasoline that burns cleaner than petroleum-based gasoline, today announced the results of an internal study that confirms the commercial viability of a U.S.-based project.
"Our recently completed study indicates that a small to midsize natural gas-to-gasoline project could payback the initial capital expenditure in a little over 3 years," said Byron Elton, CEO of Carbon Sciences." This is an extremely short payback period in the oil and gas industry and confirms the commercial viability of our project plan."
Elton continued, "There are always a number of variables in every forecast; but in our case they are limited. By integrating best of breed and proven technologies, including processes from some of the world's largest companies, we will be able to control the costs associated with building a plant. Dozens of natural gas-to-methanol plants have been built by class A contractors, as have methanol-to-gasoline facilities. Building a plant in the U.S. means our capital expenditure is more certain than if we were building it in a less developed country.
"There is more uncertainty surrounding operating expenses and projected revenues. The most significant operating expense will be for our feedstock, natural gas, which is abundant and affordable. To ensure low natural gas prices in the future, we plan to either enter into a long-term supply agreement or partner with a natural gas producer that would contribute the gas at no cost and share in the revenues. The only real uncertainty will be the price at which we can sell our finished product -- gasoline. Future gasoline prices are likely to remain high in the U.S. however, and if we can make gasoline for less than $1.00 per gallon, this project will be a real money maker," concluded Elton.
About Carbon Sciences Inc.
Carbon Sciences offers a complete solution for transforming an abundant and affordable supply of natural gas into gasoline that burns cleaner than existing petroleum-based gasoline. While large producers, such as Shell and Sasol, have built and operate world scale gas-to-liquids (GTL) plants for large natural gas fields, our solution is engineered to cost effectively produce gasoline from the thousands of available small and medium size natural gas fields. Our first generation GTL solution integrates best of breed and proven technologies, including the ExxonMobil MTG process, to produce ready to use gasoline. We are also developing a proprietary technology to enable a second-generation GTL solution that will produce even cleaner gasoline by using captured CO2 or low value, high CO2 content natural gas as part of the process. Our technology can also be used to transform natural gas into other valuable, large volume products, such as hydrogen, methanol, ammonia, solvents and plastics.
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Safe Harbor Statement
Matters discussed in this press release contain statements that look forward within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such statements that look forward. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the statements that look forward contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These statements that look forward are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.