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Wildwood LNG Demonstration Facility <br /> , <br /> this low Btu gas and thus turn a "limited use resource" into a useful product. The well that will <br /> be used as a source of methane for the project is typical of a number of gas wells not only in the <br /> area but also throughout the nation. These wells either produce low quality (low Btu) gas, gas <br /> contaminated with various materials, or that are too far from a pipeline to be economically <br /> viable. Once this technology is successfully demonstrated, it may be used cormnercially on <br /> many other sites. <br /> By treating this low-Btu natural gas, it becomes a viable source of energy. The ramifications of <br /> this are significant. By using this low Btu gas, higher Btu pipeline quality gas can be reserved <br /> for other applications such as for home heating and industrial uses thus increasing the useful <br /> reserves of that gas for this purpose. LNG has been shown to be a pollution-free fuel in over-the- <br /> road trucks. By using LNG derived from the proposed project and similar gas sources, less <br /> pollution will result as gasoline and Diesel consumption is reduced. <br /> The Project Sponsor, ALT, currently operates a facility in Arizona that produces approximately <br /> 86,000 gpd of LNG, and has agreements in place to purchase an additional 100,000 gpd to <br /> provide fuel to its associated trucking business, Jack B. Kelley, Inc. This is the country's largest <br /> for-hire common and contract carrier of industrial gases in both cryogenic liquid and compressed <br /> gas forms. ALT is dedicated to producing low-cost LNG as a clean-burning alternative to D-sel <br /> fuel in the trucking industry. <br /> ALT intends to market the LNG produced from this project to existing area customers including <br /> Raley's, the Harris Ranch, and others. <br /> 4. PROJECT DESCRIPTION <br /> Liquefaction of natural gas for fuel for mobile equipment is a proven, economical process that is <br /> employed in several areas of the country. LNG provides a safe, clean-burning alternative to <br /> Diesel fuel in the trucking industry. Typically, LNG is produced from pipeline quality natural <br /> gas by compression and cryogenic processing. Pipeline quality gas contains insignificant <br /> amounts of impurities,meaning that the entire feed stream can be processed to final product. <br /> The proposed project will be using natural gas from a well that produces non-pipeline quality <br /> gas. The gas from this well contains about 17% nitrogen as well as trace amounts of other non- <br /> methane organic compounds. The high nitrogen content in the gas from this well prevents it <br /> from being economically used as pipeline feed gas. The cost of treating the gas to pipeline <br /> quality by removing the contained nitrogen is uneconomic. Therefore, unless an alternative use <br /> for the gas is found, it remains an unusable resource. <br /> ALT proposes to construct a demonstration facility that will recover the natural gas from the <br /> existing well and, through a series of cryogenic processes, produce purified LNG. Thus the <br /> proposed process creates a beneficial use for the gas. <br /> AES Construction Group <br /> Page 2 <br />