GREENPOWER Energy has signed a Farm-In Agreement allowing Regal Resources to establish an underground coal to liquids process at Greenpower’s Exploration Licence 4860.
Regal Resources says it is currently planning to commence pilot testing its coal-to-liquids technology at Oak Park west of Melbourne. Assuming this is successful it will use this technology at the Gippsland site.
A condition precedent of the mineral processing project is establishing the existence of a reserve of coal or carbonaceous material sufficient to support a commercial operation at the site. A further condition is successful renewal of Exploration Licence 4860, due to expire in August 2010.
Regal Resources’ coal-to-liquids process is a new invention that aims to convert low rank coal/lignite into a crude oil substitute. Coals are liquefied within the underground coal seam. Regal recently announced approval from the Victorian Department of Primary Industries and the Victorian Environment Protection Authority for the pilot test. The pilot will commence in Q1 2010.
The company says the Exploration Licence Area is close to infrastructure and within the rich Gippsland coal region of Victoria.
Also, MOL Gippsland has conditionally agreed to assign half of its interest to a third party which is in the process of acquiring rights to technology that has the potential to convert lignite to methane “in-situ”. It is proposed such technology would be made available via sub-license to the joint venture.
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