Aberdeen-based technology firm Gas2 said yesterday it had received £5.5million of funding to develop a system which could open up remote gas reserves.
The company is working on technology which turns gas into liquid fuel and said it would use the cash to build a pilot reactor plant.
Gas2, which employs 16 people in Aberdeen, said its gas-to-liquid (GTL) process was more environmentally-friendly than other systems and would make small, remote gas discoveries economically viable because it was cheaper than competitors.
It said the technology could be used in the shale and unconventional gas industry, which is booming in North America.
Gas2 started working on the project after agreeing an exclusive technology licence with Robert Gordon University three years ago, and the university joined other shareholders including Lime Rock Partners to raise the latest funds.
The firm’s pilot reactor plant will be built at Redcar near Middlesbrough and will be operational later this year, while laboratory work will be carried out in Aberdeen. It is expected Gas2’s GTL technology will be on the market next year.
Mike Fleming, Gas2’s co-founder and managing director, said there was a “great commercial prize” should the project be successful. He said: “We are entering a new and exciting phase with the build of the pilot plant, which will validate on a larger scale the commercial viability of the Gas2 process.”
Saad Bagach, managing director of Lime Rock, said: “The global demand for new solutions is vast and the ability of Gas2 to secure this level of funding in today’s economic climate is a powerful indicator of confidence in the company and the potential of its technology.”