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Penrice Soda strikes coal seam gas deal
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On Tuesday 7 June 2011, 12:49 EST

Penrice Soda Holdings Ltd has struck a deal with US giant General Electric to provide the coal seam gas (CSG) industry in Australia with a process to remove brine from its wastewater.

In doing so, the process produces saleable chemicals and wastewater that's clean enough to be returned to the environment, Penrice says.

Penrice and the water and process technologies business of GE Power & Water will build demonstration plants to commercialise technology developed by Penrice.

Drilling coal seam gas involves "fracking", or hydraulic fracturing, using an array of chemicals, which has raised concerns in the broader community about the potential for toxic rock to contaminate surrounding water supply.

The company's shares had shot up 6.5 cents, or 46.43 per cent, to 20.5 cents at 1219 AEST following the announcement of the deal between Penrice and GE Power & Water on Tuesday.

Penrice makes soda ash, which is used in glass and washing powder, and sodium bicarbonate, and says it would diversity its chemicals business by using the brine.

Penrice managing director Guy Roberts said the technology would mean treated CSG water would be clean enough to be returned to the environment, used for agriculture or as potable water.

"Penrice is confident that its technology provides a valuable opportunity to assist the CSG industry solve one of its major environmental challenges in dealing with its CSG water - by producing saleable chemicals as the water is cleaned," Mr Roberts said in a statement.

"It is envisaged that the companies will join forces to create an attractive solution to one of the major issues confronting the CSG industry - how to successfully deal with the water that accompanies the gas extraction process."