2 August 2007
In its Quarterly Report released on 31 July 2007, White Energy Company Ltd (ASX:WEC) (“White Energy”) referenced that it has completed pilot scale testing of a US lignite coal as part of a major study into the generation of synthetic natural gas in the USA. Approximately one tonne of coal from the North Dakota region was successfully processed using White Energy’s patented binderless coal briquetting process (“BCB”) to produce high quality upgraded coal with more than 50 per cent greater useable energy content, excellent handling properties and very consistent physical properties. This statement has generated interest, so the Company sets out further information below.
The coal sample was supplied by Allied Syngas Corporation (“Allied Syngas”), a US company which is making a major investment to turn the isolated low grade coals of the Montana / North Dakota region into a high value synthetic natural gas. The coal upgraded by White Energy’s patented BCB process shows the potential to significantly improve the efficiency and stability of the gasifiers used to generate the Syngas, which is a precursor to the production of natural gas.
Following the successful BCB pilot plant tests, Allied Syngas stated that they were very impressed with the quality of the product and the suitability of the BCB process for large scale commercial application. Drums of the upgraded coal, from the BCB pilot scale trials have been sent to Germany for tests at Freiberg University in their gasification and coking test rigs. The results of this testing are expected to be available soon and the company will provide further details of the test results at that time.
Allied Syngas have also contracted the international engineering group, Worley Parsons, to undertake a process optimisation study and have instructed that White Energy’s BCB process be included in the study. White Energy expects that the results of the optimisation study will show that apart from its use in upgrading sub-bituminous coal to make it more emission compliant and energy efficient, White Energy’s binderless coal briquetting process may also be utilised in the production of synthetic natural gas.
The use of White Energy’s BCB process in the production of synthetic natural gas represents another potential expansion of White Energy’s business model. White Energy will now work with Allied Syngas and other industry participants in determining the role which White Energy’s coal upgrading process can play in this process and the optimisation of White Energy’s economic return.
White Energy is the exclusive worldwide license holder of the binderless coal briquetting process that enhances relatively poor quality coal to significantly increase its energy efficiency. The process has two major benefits: it results in substantial transportation and operational cost savings and it creates environmental credits by reducing emissions. Competitive, independently verified technology – the White Coal Technology was developed by CSIRO in conjunction with TraDet Inc, K.R. Komarek Inc and The Griffin Coal Mining Company Pty Ltd. Independent tests, by both expert engineers and coal producers, have proven the process to be more cost and operationally efficient than competing technologies.
About Allied Syngas Corporation
Allied Syngas is part of the Allied Resource Corporation, which is commercialising a series of technology-based environmental services operating primarily in Europe and North America. Allied Syngas, located in Wayne Pennsylvania, has the exclusive licence to commercialise the British Gas Lurgi gasification process in North America, which uses low grade coals to generate synthetic natural gas. The process facilitates lower environmental impact power generation and is becoming an increasingly attractive alternative to traditional power generation.
John Atkinson – Managing Director, White Energy Company Limited.
Tel: + 61 2 9251 1311