Posted on 03/24/2006 8:36:47 AM PST by dangerdoc
Digital Gas Advised by Oil Shale Partner That Department of Energy Laboratory Signed Agreements on Product Development and Intellectual Property NEW YORK--(BUSINESS WIRE)--March 7, 2006--Digital Gas, Inc. (OTC Pink Sheets:DIGG) announced today that its oil shale technology development partner has concluded negotiations with an operator of a major U.S. Department of Energy laboratory for further development of the fuel cell system the two companies will seek to commercialize. Exclusive product development and intellectual property agreements were signed by the operator of the laboratory.
After an extensive due diligence process, in which numerous fuel cell and other research laboratories were interviewed and considered, our partner determined that this Department of Energy laboratory presented the ideal mix of laboratory, scientific and engineering expertise and was particularly impressed with the operator's background and strengths in the areas of fuel cell development, geothermic modeling and reservoir analysis needed to support the fuel cell system, with initial emphasis for use in this country's vast oil shale resources.
The comprehensive Statement of Work includes detailed computer modeling to optimize efficiencies of the system and establish design parameters for commercialization and various stages of bench testing, culminating in the development and demonstration of a working product ready for "in situ" oil shale applications.
Digital Gas plans to introduce its partner, as well as their strategic partners and first major clients, in a joint press release in several weeks announcing several new developments, including property acquisitions, strategic alliances, major funding and a public service information website regarding energy savings, resource production enhancement and the environmental benefits of using the products and technologies of Digital Gas and its partners.
This fuel cell system represents a breakthrough approach for unconventional oil recovery. The system utilizes high temperature solid oxide fuel cells to slowly heat the oil shale formation in an "in-situ" manner. The heat travels through the rock, pressurizing the underground formation, lowering the viscosity of the oil in the shale, while creating "off-gases" of high quality. Both the oil and gases are moved into collector wells, where they are extracted by conventional means.
The compelling innovation of the system is that it is designed to run off the gases that are derived from the heated oil shale formation itself. By using a portion of the gases generated during the process as its fuel, the fuel cell system thus becomes self-fueling. It also produces electricity as a by-product. As a result, this technology simply offers a better net energy balance than other unconventional oil recovery methods. In addition, this is all accomplished without the major environmental impacts associated with oil shale mining or surface retorting alternatives.
The Department of Energy laboratory and its operator have taken a leadership role in solid oxide fuel cell development by virtue of their substantial contributions to the Solid State Energy Conversion Alliance (SECA) with the ultimate goal of bringing low-cost solid oxide fuel cells to the market place. SECA is a collaborative alliance between several major federal labs, U.S. industry, universities and other research organizations.
The uniqueness of this fuel cell system is that it utilizes solid oxide fuel cell technology designed for its heat, with the electricity being a by-product. Unlike all other fuel cell applications, where the heat is considered "waste" that must be mitigated or managed, this approach embraces the heat. Nearly every BTU of energy that goes into the fuel cell system comes out as either heat or electricity, both of which can be put to immediate use. The end products -- shale oil, natural gas and electricity -- can all be used on site or sold into national energy markets. Nothing goes to waste.
Digital Gas encourages those with interests in oil shale development - landowners, strategic parties, and prospective investors - to contact the company to discuss possible relationships of mutual benefit.
Digital Gas is also pleased to announce that it has received a letter commitment to provide a collateralized short-term bridge financing followed by a structured financing for a target investment in the quarry business, subject to due diligence. Management is in the process of deciding where to utilize this offer.
Digital Gas?
Must be the kind I get when I'm programming...
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