Linc Energy chief Peter Bond holds a bottle of jet fuel made from underground stranded coal. Related Coverage Linc's Bond to test new jet fuel Perth Now, 1 day ago Golden energy opportunity
The Australian, 20 Mar 2012 CLEAN-COAL company Linc Energy's chief executive, Peter Bond, is travelling to Adelaide today on a jet powered by fuel made from underground "stranded" coal. The company says its proposed $1 billion plant in South Australia is now "a top priority" and Mr Bond said developments in producing Jet A1 synthetic fuel from coal had given impetus to plans for the underground coal-gasification (UCG) and gas-to-liquids (GTL) plant in the Arckaringa Basin in the state's north.
"We own a lot of coal in South Australia," he said.
"It's a top priority to have a plant in SA and we'll be looking for the best location in this coming year."
The plant would produce one billion litres a year, at a forecast production cost of 20c a litre which "`will be competitive" in price against orthodox fuels, he said. "Petrol is not our focus," he said.
"Diesel and jet fuel are in high demand and growth."
It is understood Linc has talked with a major oil company to distribute its product.
Mr Bond was due to leave Perth today on a CJ2 Citation jet on a 4300km trip to Chinchilla in Queensland where Linc has a demonstration plant. He will stop over in Adelaide for meetings tonight.
The jet's synthetic fuel had been refined to meet International Air Transport Association approval and was blended 50-50 with standard jet fuel for the flight, he said.
The flight follows a 5500km road trip across Australia Mr Bond made last year in a Volkswagen powered by diesel produced at the Chinchilla plant. "There's nothing like being in the front seat of a jet at 40,000ft to show you have total faith in the product," he said.
Earlier this year Linc embarked on a joint venture to commercialise the technology in China.
Coal more than 300m underground is heated to over 1000C and gas is captured from that.
In what Mr Bond called "a big chemistry set" using catalysts, the GTL plant produces liquid fuel which is configured as either diesel or jet fuel.
The coal does not have to be extracted. The "spent" coal remains underground.
"It's creating a pure fuel, no contaminants, it's high octane, zero sulphide and has a very low greenhouse gas footprint," he said.
Mr Bond said using domestic coal would help provide a solution to the energy security challenge facing Australia.
Australia was importing $US47 million a day of crude oil or refined materials, he said.
"If Australia could produce more of its own jet fuel and diesel product, it would assist addressing concerns about rising oil prices and balance of payment deficits which are putting huge pressures on the aviation business and the economy at large," he said.
