Nat gas-to-diesel plant ready in Reno

By Nicholas Zeman | January 19, 2010
Posted February 24, 2010

A natural gas processing firm that intends to extend the national diesel pool is set to operate next month in the Reno-Tahoe Industrial Park outside Reno, Nev. Advanced Refining Concepts liquifies natural gas and processes it until it resembles No. 1 diesel. This liquid is then blended with conventional diesel fuel to form ARC's trademarked GDiesel at a facility said to be the first petroleum-based U.S. refinery to open in 30 years.

"It's basically an upgraded oil terminal," said Peter Gunnerman, CEO of ARC. "We have four 5,000 barrel storage tanks, a loading rack, the main [processing building] and an electrical building. We operate at low-temperature and low-pressure, so we don't need a lot of equipment."

Because natural gas is ultimately cheaper than crude oil, ARC can sell its blended diesel product at a reduced price compared to conventional diesel-after a production process that is reported to be extremely clean. "ClearRefining is the world's first pollution-free refining system," ARC said. "Phase 1 of ARC's Nevada plant will produce 100,000 gallons per day of its inaugural product, which improves fuel economy, is smoke- and soot-free, and requires no modifications to vehicles or power generating equipment."

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