Cellulose

G4G Resources Forms Subsidiary Alternative Fuels Corp. to Produce Synthetic Fuels From Municipal Waste

Date Posted: September 4, 2008

Vancouver, BC—G4G Resources Ltd. (TSX VENTURE:GXG) ("G4G") announced the incorporation of a wholly owned subsidiary; Alternative Fuels Corporation ("AFC").

AFC will work towards producing synthetic fuels from municipal waste and stranded natural gas using the new generation Fischer Tropsch technology developed by the Centre of Materials and Process Synthesis (COMPS) situated at The University of Witwatersrand in Johannesburg ("Wits").

The COMPS team has developed pilot plants for Linc Energy, Australia and Golden Nest, China.

Initially AFC will focus on opportunities where the ability to operate smaller scale plants will give it a competitive advantage and the opportunity to capitalize on underutilized hydrocarbon assets.

The Wits COMPS technology will enable AFC to compete with the following advantages:

• Lower capital cost than traditional Fischer Tropsch plants

• Quicker start-up due to smaller scale and modularity

• Rapid scalability

• Significantly lower CO2 output

• Lower requirements for water

• Produce cleaner burning fuel that is sulphur and particulate free and has no aromatics

"AFC has been incorporated to provide solutions to the current energy crisis the world finds itself in.

"Emerging nations require more energy and liquid fuels for transportation every day, but less oil is being produced and new discoveries are unlikely to keep up with rising demand.

"As the world comes to grips with peak oil, we expect prices at the pump to continue to rise," said Basil Botha President and CEO of G4G Resources.

"There is no single answer to the crisis and that the world will have to explore many solutions to avoid this crisis."

The Fischer Tropsch process was invented in Germany in the 1920s, was utilised to produce liquid fuels on a large scale in the 1930s and 1940s, and has been successfully used since 1955 to provide South Africa with nearly 30% of its liquid fuels."

"The problem with the traditional Fischer Tropsch process is it is expensive, produces large volumes of carbon dioxide and requires investors with very deep pockets," continued Mr. Botha.

"But now that has changed. The advanced Fischer Tropsch process developed by Wits COMPS has given Fischer Tropsch a new lease of life.

"The team of talented chemical engineers has found several ways to improve the process so that getting started only costs a fraction of traditional plants due to the modular design.

"Once the plants are constructed and operating, they can be quickly scaled up by simply adding additional modules, resulting in increased production capacity.

"This new application of Fischer Tropsch technology produces approximately 30% less carbon dioxide and may qualify for carbon credits.

"With biomass, the process may have the potential to be carbon neutral.

"The feedstock can be as varied as municipal waste, old tires, natural gas, flared gas from oil wells or coal, but more importantly the fuel produced is free of sulfur, particulates and nitrous compounds.

"It is AFC's intention to joint venture with partners who have access to stranded gas assets and municipal waste dumps in stable countries where energy security is paramount.

"The actual economic viability of any projects will be determined by future feasibility studies."

For more information, call 604-602-9868.

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