Solid Energy secures access to coal upgrading technology
New Zealand's Solid Energy has signed an agreement with Australian company Ignite Energy Resources Pty Ltd (IER) to secure the exclusive New Zealand rights to a technology which converts low energy feedstocks, such as lignite and biomass, to high-grade coal and synthetic crude oils which have the potential to be upgraded to transport fuel.
The binding heads of agreement will lead to a licence agreement, worth up to A$15M, plus royalties. Solid Energy and IER will work together to further develop and commercialise the technology and will construct and commission a pilot plant able to process lignite and biomass in New Zealand.
The commercial pilot plant, in a yet to be determined location, will be capable of expansion to a 1 mtpa facility.
IER is currently converting lignite to synthetic crude oil and high-grade coal at a pilot plant in Somersby, New South Wales, Australia. The high-grade coal produced has the potential to be used in the steel-making process, says Solid Energy.
“This is a very exciting development for Solid Energy. While the technology is still to be proven at commercial scale, it has great potential for our Southland lignite and biomass resources, which together with the production of first generation technology biofuels are significant and developing areas in the company’s portfolio,” said Brett Gamble, Solid Energy’s general manager, new energy.
Solid Energy is currently investigating several technologies for converting its substantial lignite resources in Southland to energy forms and products. This includes developing a lignite-briquetting plant near Mataura with GTL Energy and assessing the viability of a lignite-to-urea plant in Southland with Ravensdown.
Brett Gamble adds: “We’re progressing all our Southland lignite projects in parallel as there are sufficient resources in Southland to accommodate our briquetting plant, coal to fertiliser project, lignite to transport fuel project and many others besides."
