Linc Energy Looks for Partners for Move to Commercialisation

Linc Energy (ASX:LNC) is likely to get some help from a partner to build its first commercial plant in Australia. The Managing Director Peter Bond said that they were still about two years away from commercialising their underground coal gasification technology.

The Brisbane based Linc Energy is a company which uses underground coal gasification and gas to liquids technologies to produce energy. It has operated the Chinchilla demonstration facility in Queensland for over 10 years using Underground Coal Gasification (UCG) and Gas to Liquids (GTL) technology but is yet to go commercial.

The costs of building a larger plant in Australia were seen by Mr. Peter Bond as a hurdle to full commercialisation. The cost is estimated at $918 million thanks to rising construction costs. According to a report by Linc the cost of construction in Australia was 40% higher than in parts of North America.

Mr. Bond said that it would take about 20 months to build the plant and there was a good chance that they would take on a partner to lower their capital investment and half the risk.