HOUSTON—Biofuels Power Corp. has signed a letter of intent with ThyssenKrupp Industrial Solutions and Liberty GTL Inc. to build a small-scale gas-to-liquid demonstration facility in Houston. The parties have established a non-binding target date to complete installation and commissioning of the GTL Pilot Plant on or before Dec. 31, 2014.

The purpose of the GTL Pilot Plant is to commercially demonstrate converting stranded natural gas resources to synthetic crude oil. BFLS will operate the GTL Pilot Plant for the two-year demonstration.

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