Leigh Creek Energy to produce synthetic gas in China

Leigh Creek Energy’s (ASX: LCK) success in in-situ coal gassification (ISG) at its South Australian coal deposit has allowed it to take its processes to China where it will be used to turn coal into hydrogen.

The company announced today it had signed a heads of agreement with China New Energy (CNE) to form a joint venture company to deliver ISG to China.

Leigh Creek has also been invited to move to membership of the Shanghai International Energy Exchange so LCK and CNE can directly trade their gas on the exchange.

LCK executive chairman, Justyn Peters said CNE, Leigh Creek’s largest shareholder, were a large privately-owned Chinese group.

CNE owns large underground coal resources and its Hydrogen Energy Industrial Development in Shanxi province where Leigh Creek’s technology would be utilised.

Peters said: “This agreement shows they are not only investors in the company but have actively worked with LCK to gain a strong foothold in China and foir LCK to grow.

“This has always been the strategic intention when LCK became shareholder.”

Leigh Creek’s brown coal reserves in SA have been successfully gassified underground, with the gas containing a high proportion of hydrogen.

As reported in @AuManufacturing, the company is on the path to commercial development at Leigh Creek, with gas supply and commercial production of fertilisers under consideration.

Peters said: “China is a coal rich country with a large resource of stranded coal suitable for ISG.

“The development of ISG in China represents a great opportunity for LCK to be a major player in this developing economy.”

The partners envisage commencing an ISG project in China by the end of this year.

Picture: Leigh Creek Energy

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