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Carbon Energy Limited (ASX: CNX) developer of Australia’s first commercial Underground Coal Gasification (UCG) fuelled power station has executed a Share Sale Agreement to acquire USA-based Clean Coal Inc. and UK-based Clean Coal Amasra Ltd.
This transaction delivers projects in the United States of America and Turkey as developed by Clean Coal Ltd. The acquisition has the potential to increase Carbon Energy’s coal resources by almost three fold to in excess of 2 billion tonnes and underpins the Company’s plans to build an international portfolio of UCG projects. The Agreement has been approved by the Boards of the respective parties. There are a number of conditions precedent for the benefit of Carbon Energy consisting of minor variations to the agreements with Anadarko, Great Northern Properties and Hema, which are anticipated to be satisfied within the next 4 weeks. Andrew Dash, Carbon Energy’s Managing Director said, “This Agreement will launch Carbon Energy into both the North American and European markets and underpins the transformation of the Company into a truly international energy business. Whilst we will need to undertake exploration programs for each site, the considerable amount of data available to Carbon Energy gives us a high degree of confidence that we will confirm our target resources. If we are able to fully develop these assets our experience in Queensland suggests that each project will be capable of producing approximately 5,000 PJ of syngas from 500 million tonnes of in-situ coal resource, enough to generate 5,000 MW of electricity for 15 years in each location. Our technology is particularly attractive where the coal lies in deep seams either unreachable or uneconomic to recover via conventional mining. Moreover the technology which was developed in conjunction with Australia’s premier research agency, CSIRO, has a low impact on the environment, does not de-water the regional water table and has a small surface footprint especially when compared with current mining technique which benefits all stakeholders.” said Mr Dash. More information, click here |
