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Linc Energy receives A$20m in payment for African coal gasification project

Published on Jan 16, 2014 10:25 AM
 
Linc Energy's chief executive Peter Bond. The Australian energy firm has received a payment of A$20 million (S$22.69 million) from South African coal miner Exxaro as part of an intellectual property licence agreement. -- PHOTO: LINC ENERGY

Australian energy firm Linc Energy has received a payment of A$20 million (S$22.69 million) from South African coal miner Exxaro as part of an intellectual property licence agreement.

With this payment now having been made, the two partners can continue the development of their first joint underground coal gasification project (UCG) in Sub-Saharan Africa, Linc Energy said on Thursday.

UCG is the process of converting coal into a valuable synthetic gas and Linc Energy owns and operates the world's only commercial UCG operation, in Uzbekistan.

Linc Energy, which last month moved from the Australian Stock Exchange to the Singapore bourse, is entitled to a further payment of A$7 million when the gasifer passes some performance tests. It will also receive ongoing royalties for the synthesis gas produced and equity participation in future projects.

 
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