New Zealand-based coal producer Solid Energy has announced that it has signed an agreement with innovative Australian company Ignite Energy Resources Pty Ltd (IER) securing the exclusive New Zealand rights to a technology which converts low energy feedstock, such as lignite and biomass, to high-grade coal.
According to a Solid Energy press release, the binding heads of agreement will lead to a licence agreement worth up to AU$15 million, plus royalties. Solid Energy and IER will work together to further develop and commercialize 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 million mt per annum 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 steelmaking process.