BP has completed a gas-to-liquids (GTL) demonstration project in Nikiski, AK, and proven that it can produce diesel and aviation fuel from natural gas on a commercial scale. The company plans to close the facility by the end of 2009 after seven years of operation, the company said Wednesday.

The project has proved that BP’s GTL process to make diesel and jet fuel from natural gas can be scaled-up from the laboratory and operated safely and reliably, it said. “We have learned a great deal from the Nikiski test facility,” said BP Alaska President John Minge. “The technologies developed and improved there will eventually play a role in meeting the world’s growing demand for cleaner fuels.”

The company’s GTL development program will continue in Europe, where BP said it is working with partner Davy Process Technology on the engineering design of full-scale GTL units.

The closure of the project affects about 15 BP employees, who will be offered positions elsewhere with BP.

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