from http://abnnewswire.net/press/en/33148/pressrelease.html
Sydney, Sep 25, 2006 (ABN Newswire) - You are going to hear a lot about gas/coal to liquids technology in Australia in coming years and it could very well end up supplanting the likes of ethanol and biodiesel as a source of energy in competition with oil.
South Africa has used it for years (Sasol), the Germans used similar technology during World War Two and intensive studies are being made to use it to process natural gas in the Middle East, the US and even Australia's north west shelf.
The Victorian Government has just given the greenlight to a 50-year mining licence for a $5 billion joint project by from Shell Oil Group and Anglo American to convert Latrobe Valley brown coal into diesel fuel.
This is more like the processes used by the South African company, Sasol (Anglo American is a South African mining giant now based in London). It will use Shell technology.
Latrobe Valley brown coal is currently used to generate power from a complex of power stations.
The Victorian Government's approval requires the project to capture and store underground - a process known as geosequestration - carbon dioxide produced during the process.
Coinciding with the licence approval to the operator, Monash Energy, Shell Gas and Power and Anglo American also signed a joint development agreement to advance the project.
The Monash Energy plant is forecast to produce 60,000 barrels of synthetic diesel daily when it comes on stream by the middle of the next decade.
MNM Price at posting:
16.3¢ Sentiment: Hold Disclosure: Held
