Leigh Creek Energy (ASX: LCK) is in discussions with ‘several international companies’ in the nitrogen fertiliser market to establish a new production plant in South Australia.
The company has successfully demonstrated in-situ gassification of coal reserves at Leigh Creek, making it the largest uncontracted gas reserve in eastern Australia.
The company said in a statement: “We are making significant progress on securing a strategic and cornerstone partner.
“We have held several meetings…to secure capital for the project, engineering of the plant and their operational expertise.”
The talks with fertiliser manufacturers follow predictions of low operating costs in a study by Thyssenkrupp, reported in @AuManufacturing news.
Leigh Creek syngas can be used directly to make fertiliser, rather than having to be turned into ammonia in an extra step of the process.
“LCK continues to move forward on the basis that it can provide both pipeline quality natural gas and/or fertiliser to the market.”
The company is also making progress in China where minority owner China New Energy (CNE) plans to use LCK technology to produce hydrogen and fertiliser.
However while the China connection may provide early revenues, Leigh Creek’s focus remains developing the coal field and providing gas to consumers and a fertiliser production plant.
Picture: Leigh Creek Energy/pilot plant
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