This article mentions NSW CSG but not ESG specifically...From...

This article mentions NSW CSG but not ESG specifically...

From "Adelaide Now".

PENRICE Soda hopes to start work on a pilot plant within months to demonstrate new coal seam gas technology.

The technology is aimed at solving one of the biggest environmental challenges facing the coal seam gas industry.

The Adelaide-based soda ash and sodium bicarbonate producer has tested novel technology to treat CSG water by removing the associated brine, making saleable chemicals from it and returning clean water back to the environment.

CSG water is groundwater brought to the surface during CSG extraction, and frequently contains high quantities of salt and other contaminants that limit the water's use without treatment.

The potential growth of the industry and the inadequate methods of disposal of this water have raised concerns about aquifer contamination among environmental groups.

Yesterday, Penrice's shares soared more than 50 per cent - before closing 21 per cent, or 3c, higher at 17c - on news of its partnership with GE Power & Water to commercialise the technology.

Chief executive Guy Roberts said the company had trialled the technology at its Osborne plant for years, and it works.

"We think we have a future up there in Queensland," he said.

"The pilot plant will be small-scale, about 15-20 per cent of the commercial scale plant, will cost a couple of millions and demonstrate how we can scale up the plant," Mr Roberts said.

Funding for the pilot plant and any commercial plant - estimated to cost about $100 million - will need to come from within the CSG industry.

Penrice's role would be to operate and maintain the brine treatment plants and sell any chemicals extracted while GE Power & Water would provide technology and equipment expertise.

A major benefit of the Penrice process technology is that treated CSG water will be sufficiently clean that it can be returned to the environment or used for agriculture or as potable water.

Once the consortium wins a contract for a pilot plant, the partners will set up a project management office in Queensland.

It was too early to predict the value of the technology for Penrice Soda, Mr Roberts said.

"However, we are in it to make returns for shareholders. We see our returns coming from three areas - licensing, fee-based income from operating and maintenance and marketing the products," he added.

"It is an important diversification for us and our operations in South Australia."

"Creating extra soda ash capacity in Queensland will reduce pressure on our Osborne plant," he said.

He was confident of the commercial quality and quantities of the chemicals from the process.

The company has applied for patent protection, which will take about 12 months, and is also in talks with CSG explorers in New South Wales.

While "there is a lot of water yet to go under the bridge", Mr Roberts said 2013 would be ideal to have the commercial scale plant in place - in time for the CSG industry's production target of 2014.