IEP, Dominion In Agreement To Commercialize Method For Natural Gas Bioconversion

(RTTNews) - Intrexon Corp. (XON), engaged in synthetic biology, Thursday said Intrexon Energy Partners or IEP, and Dominion Energy, a subsidiary of Dominion Resources (D), have entered into an agreement to explore the potential for commercial-scale biological conversion of natural gas to isobutanol, a drop-in fuel with several advantages over other clean burning gasoline blendstocks.

Intrexon's proprietary methanotroph bioconversion platform has the potential to transform the gas-to-liquids or GTL industry through use of optimized microbial cell lines to convert natural gas into higher carbon compounds like isobutanol and farnesene under ambient temperatures and pressures.

This novel approach avoids costly, resource intensive thermochemical GTL conversion methods. It also offers a biofuel that does not utilize sugar or other plant-based feedstock, which are expensive carbon sources that compete with food crops for arable land.

According to Intrexon, through the substantial yield advantage of the methanotroph over other microbes, Intrexon's bioconversion platform has a favorable economic profile that, based on current targets, will allow even small scale demonstration plants to achieve profitability within the first year of production.

IEP will be required to meet specific development milestones before initiation of certain commercialization activities. Dominion will be the exclusive partner to construct, own, operate, and maintain the production facilities in the Marcellus and Utica Shale Basins located in eastern North America via potential long-term services agreements with IEP.

Within this region, the collaboration plans to build natural gas bioconversion facilities leading to the creation of job opportunities and generation of local and state tax revenue.