Coalworks Limited (CWK), an emerging Australian energy developer, and Synthesis Energy Systems Inc. (SES), a global industrial gasification company, intend to develop, through a strategic alliance, Coalworks’ first coal gasification and liquefaction plant at Oaklands in New South Wales, Australia utilizing SES’ proprietary U-GAS® gasification technology, which SES licenses from the Gas Technology Institute. Coalworks and SES have entered into a strategic alliance agreement which is based on the U-GAS® technology been proven on a commercial scale with gasification plants in China. The U-GAS® technology is ideal for sub bituminous coal like that is found in Oaklands. The Oaklands coal resource is well suited for gasification and downstream value added products. Oaklands coal would be converted to gasoline via a planned coal to liquids (CTL) plant.
This strategic alliance between SES and Coalworks is an important step forward as we grow our technology licensing business outside of China,” said Donald Bunnell, President and CEO of Synthesis Energy Systems – Asia Pacific. “We are looking forward to working with Coalworks as they develop their first CTL plant based on our U-GAS® technology and our experience with CTL. Coalwork’s sub-bituminous coal appears to have excellent gasification potential and there is an excellent synergy between our two companies,” Bunnell added.
The feasibility study contemplated under the Coalworks-SES agreement will further define a plant to process coal mined at Oaklands into gasoline which will be sold into Australia’s commercial gasoline market. Coalworks owns 100 percent of the Oaklands Coal Project and is currently undertaking a separate feasibility study to determine the viability of constructing and commissioning a coal mine on the site.
Commenting on the strategic alliance, Coalworks Managing Director and CEO, Andrew Firek said “The experience SES has acquired through developing two commercial scale coal gasification plants in China, as well as its other development activities, will be invaluable to Coalworks. We believe that forming a strategic alliance with SES will be a milestone event for Coalworks. The agreement which would allow Coalworks an exclusive licence for the U-GAS® technology in the Oaklands Basin will also provide a framework for Coalworks to proceed with SES’s assistance through the engineering design phases utilizing state of the art plant construction and operation strategies to achieve reduced capital expenditures and key performance indicators,” said Mr. Firek.
Tags: Coal to Gas, Coalworks, CWK, JV Agreement
