Slated for commissioning on or before 31 December 2014, the GTL pilot plant will be operated by Biofuels Power for two years to commercially demonstrate the conversion of stranded natural gas resources to synthetic crude oil.

In addition to providing technical services, ThyssenKrupp will contribute a previously operating auto-thermal reformer pilot plant of proven design (ATR), which will be used to generate synthesis gas feedstock for the production of synthetic crude oil.

Liberty will provide intellectual property and operating know-how regarding crude oil synthesis as well as the relevant catalyst supply.

Biofuels Power chief commercial officer Eric Gadd said: "This GTL pilot project is an important milestone toward our goal of installing small scale GTL plants at stranded gas well sites.

"The pilot plant will prove the commercial viability of deploying small-scale GTL plants in North America. With an abundant natural gas resource base, future gas-to-liquids developments like this could fill a need in the energy industry for decades to come."

Liberty president Wayne Stocks said: "This plant will be a first for the United States and an important step to the future of clean fuels for the Nation.

"Liberty is proud to be associated with ThyssenKrupp and Biofuels Power and is truly excited to commercialize small-scale gas to liquids on a global scale."