Natural Gas
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Natural Gas

The United States has an abundant, diverse supply of alternative fuel feedstocks. To tackle energy security and produce alternative transportation fuels at significant scale, we must utilize the domestic resources that offer the most attractive long-term price-point. Coskata believes that today, the most promising feedstock available is natural gas. 

Proven U.S. Natural Gas Reserves

Proven U.S. Natural Gas Reserves 

Source: Energy Information Administration

Natural Gas Economics

Natural gas is an attractive feedstock for liquid transportation fuels in the United States due to its abundant supply and low cost relative to gasoline, diesel and ethanol. The U.S. Energy Information Administration (EIA) estimates that currently there are more than 2,500 trillion cubic feet of recoverable natural gas in the U.S. What’s more, during 2011 gasoline and ethanol were six to eight times more valuable than natural gas on a per mm Btu basis, and this price differential is expected to persist for the foreseeable future. Processes that convert natural gas to fuels such as ethanol will offer compelling economics by allowing producers to take advantage of the difference in value between the two products, and will give Americans a clean, low-cost, domestic fuel.

Producing ethanol from natural gas is an option that can compete directly with traditional gasoline, without government subsidies, offering consumers a clean-burning fuel at a low price. In fact, based on 5 years of demonstrating our natural gas-to-ethanol technology, we believe it is possible to achieve unsubsidized production costs of significantly less than $1.50 per gallon. We believe that the only way to drive widespread adoption of alternative fuels is to offer a product that is price-competitive with traditional fuels such as gasoline.

Proven Natural Gas Conversion Technology

We have been successfully producing fuels and chemicals from natural gas for the last five years including operations at our pilot facility in Warrenville, Illinois, and at our commercial demonstration plant in Madison, Pennsylvania. What’s more, our technology’s compatibility with natural gas has been validated by independent engineering reviews. By leveraging widely used components and established technologies from leading providers in the natural gas industry, we have designed our commercial facility to minimize risks. 

Historic Decoupling of Natural Gas and Fuel Prices

Historic Decoupling of Natural Gas and Fuel Prices

 Source: Energy Information Administration