Biofuels Power Corp has signed a letter of intent with RMBI International to perform a feasibility study related to the construction of a small scale, modular gas-to-liquids (GTL) facility in the US state of Texas.

The facility is located at Biofuels Power’s Houston Clean Energy Park (GTL Plant).

The feasibility study worth about $1m is expected to be completed in four months.

A joint venture will be formed with the company receiving a carried 25% interest in exchange for the long-term use of site and certain generation equipment should the project be completed.

The focus of the feasibility study will be on smaller units capable of converting five-ten million cubic feet per day of natural gas into about 500-1,000bbls per day of syncrude.

Biofuels Power project manager Steve McGuire said the company’s Houston Clean Energy Park is an ideal location for the development of a gas-to-liquids facility.

"The site has access to a large intrastate pipeline, grid connection through the on-site substation and easy access to the Houston Ship Channel refinery and petrochemical complex," McGuire said.

"The feasibility study is an important step in commercializing the technical concept. Future gas-to-liquids developments like this could fill a need in the energy industry for decades to come."