State-of-the-Art Summary


 temperatures  to electrical power using a patented heat exchanger and turbine/generator arrangement. Other technologies and services include: (1) the Super CCLC, which uses steam and condensate to supplementary heat the working fluid, (2) the Final Flue Gas Cleanup System, which creates a single system to remove multiple pollutants in low temperature flue gas streams, and (3) engineering services that require a multidisciplinary approach to look at energy efficiency and pollution reduction possibilities. Assuming that the technology is applicable to 20% of the waste heat energy market, the market potential is enormous, on the order of 160 GigaWatts. Industries that could apply this technology include gas pipelines, metals and chemicals, pulp and paper, power plants and renewable sources.

Franklin Fuel Cells of Malvern, Pennsylvania was founded in November 2001 (www.franklin
fuelcells.com
). Their mission is "to accelerate fuel cell commercialization by developing and producing a unique solid oxide fuel cell technology which is capable of operating directly on today's hydrocarbon fuels." The problem this technology addresses is that current fuel cell technologies need pure hydrogen or need to reform current fuels. The technology is currently in Phase II, Proof of Commercial Viability with initial product revenues expected in 2008. The Phase I Proof of Concept suggests that this fuel cell will compete with internal combustion engines, being twice as efficient and competitive in cost per horsepower. Early applications are expected to be in auxiliary power units for trucks and recreational vehicles and distributed generation, then expanding into the traditional internal combustion transportation market. The potential applications in the oil and gas industry include remote power for offshore applications and in-situ oil shale and heavy oil heating.

The final featured company was 10 Charge, Inc. of Dallas. Their proprietary technology was initially developed in 2001 in Europe. The technology was purchased and brought to the U.S. in 2004. The primary technology is the development of smart, fast battery chargers that deliver the optimal charge for a given battery's unique and dynamic conditions. It is capable of performing as a multi-chemistry charger across a range of previously incompatible battery sizes and types, reducing charge time by up to 90%, and extending the life of the battery by 200% or more. The initial market will be for use with power tools and

consumer electronics, then eventually into industrial markets. The product recently completed testing of the first commercially-designed product.

In addition to the six featured technologies and companies, two of last year's featured firms were invited to provide an update on their products and progress. The first was TerraVici Drilling Solutions, of Houston (www.terravici.com). TerraVici is a technology development firm that provides low-cost drilling and completion tools to the oil and gas industry. Their first product is a full 3-D, low-cost, point-the-bit rotary steerable system (RSS) that is designed to outperform most rotary steerable systems on drilling performance at a fraction of the price. The X2 Rotary Steerable SystemŽ will be ready for commercial use in 2006. At 15 feet long, the X2 is half as long as the conventional rotary steerable tool configuration, providing savings in capital and operating expenses. The enabling technology is a novel control mechanism, adapted from the automotive industry, that reduces control costs by a factor of 10 without sacrificing performance. The lower cost of the tool will substantially expand the RSS market to include the smaller directional drilling and operating companies.

The other company providing an update from the previous forum was Oxane Materials, Inc. (www.oxane
materials.com
), a Rice University nanotechnology spinoff. Oxane is exploring two innovations, alumoxanes and ferroxanes to enable the development of next generation fuel cell membranes, catalyst supports, coatings, adsorbents, and other high-value products.

Technology of the Future
Vikram Rao of Halliburton Company, the invited keynote speaker, addressed "Technology to Counter Oil and Gas Shortages (Real or Perceived)." Halliburton is bullish on future oil and gas supply. Rao began with a quote from Cambridge Energy Research Associates (CERA), "a large unprecedented buildup of oil supply in the next few years.....relieve the current pressure on supply and demand." Rao structured his comments by examining the resource for future oil and natural gas in the short-, medium-, and long-term future and the technologies that will be required to produce those hydrocarbons.

Looking at oil, the short-term supplies will require higher recovery rates of conventional oil and the exploitation of increasingly mature fields. The medium term will bring in more heavy oil, recovered both cold (7 - 20 degrees API) and with thermal assist (7 to 12 degrees API). In the long term, the mining of bitumen will grow from the traditional onshore, to offshore resources. The commercial technologies on the leading edge today are being directed at the conventional resources and mature field. For heavy oil, technology improvements will be needed in lifting (increasing mobility downhole, chemically and thermally) and transportation, decreasing viscosity and partial upgrades in the field. Possible technology for recovery of offshore bitumen would include applying heat downhole or in-situ retorting.

In the short term, unconventional gas supplies, tight gas, coalbed methane, and shales, will continue to grow in the supply mix. In the medium term, coal gasification and asphaltene gasification will come into play. In the longer term, gas hydrates and in-situ coal gasification will enter the supply. The technologies that will be required to economically extract that gas are in the early R&D stages.

Where is Today's Research?
A number of research institutions in the Gulf are engaged in energy and energy-related research, not the least of which are Rice and the University of Houston. Forum participants heard details from four ongoing projects. Topics ranged from produced water issues to EOR surfactants and alkaline/surfactants processes to fuel cell advances. Beyond the universities, there is also the non-profit Houston Advanced Research Center (HARC) (www.
harc.edu
). HARC functions as a non-partisan "Boundary Organization" between the research organizations and commercialization in technology and between the universities and governments and public sector for policy issues.

Learn more about the Rice Alliance for Technology and Entrepreneurship through their website (www.alliance.rice.edu). Read about past and upcoming events and success stories, sign up for the newsletter, even become a member, or become a sponsor.


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PTTC

4th Quarter 2005