Standard Alcohol Co of America

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1. Why hasn’t mixed alcohol fuel been commercialized before now? In the late 1970’s, renewed interest in alcohol fuels arose from environmental concerns and price shock of the first Middle East Oil Crisis with OPEC. The fuels industry searched for a product that is produced domestically, would clean up engine emissions, and extend fuel supply. The fuel available was Ethanol but the search was on for even better alternatives. A major chemical company experimented with higher mixed alcohols, then the big oil companies introduced MTBE as an alternative as this is product made from waste streams from oil refining. MTBE was favored over ethanol or mixed alcohols. When oil prices dropped in the mid 80’s, there was no need to re-evaluate. More recently, fears of price spikes, dependence on foreign oil and CO2 related climate change, plus the banning of MTBE due to health and environmental concerns opened the alcohol fuel door again. The corn lobby groups positioned grain ethanol squarely at the center of government policy and commercial interests. Ethanol grew from nearly zero 10 years ago to 10 billion gallons per year in the U.S. The less established mixed alcohol fuel industry could not break into this juggernaut. In the last two years, however, analysis of costs and benefits of ethanol have shown problems in profitability, sustainability, availability and performance. The focus now is the next generation of alternative fuels to meet the oxygenate fuel requirement of 36 billion gallons by 2022. Mixed alcohol fuel is again in the running as the only fuel that can scale up to meet the volume, environmental and economic requirements. 2. What are the advantages of having so many carbon feedstock options? 1. Fuel production at the maximum amount of sites for local or regional use or transport to further markets; 2. Produce large volumes of fuel for consistent quality to market and larger market share; 3. Abundant feedstock, no shortages, renewable and fossil fuel resources produce the same valuable, powerful fuel; 4. Best use of society’s waste including municipal solid waste, tires, agricultural and forestry waste plus industrial waste such as coal fines and pet-coke 5. No need to grow and harvest crops just for feedstock; 6. More people, companies and communities benefit with powerful energy, clean environment and profitable economics 3. Since mixed alcohol fuel has never been commercialized, how can SACA substantiate that it will be profitable? SACA has been quietly researching Gas-to-Liquids mixed alcohol production since 1993, performing engine tests with E4 ENVIROLENE fuel since 1995 and it began filing formula-usage patents in 2000. The GTL process used to produce mixed alcohols is nearly the same process that has been utilized to produce methanol since 1923. With simple heat and pressure changes plus selective catalyst formulas, this process continues to prove feasible for scale-up and cost effectiveness. Carbon feedstock conversion to E4 mixed alcohol in this GTL process is higher carbon efficiency rate than methanol GTL conversion. The basis of profitability for E4 mixed alcohol commercialization is: 1.

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