Solid Energy looks at turning lignite into oil and upgraded coal

Sources: Solid Energy and Lindsay Clark

The Melbourne-based company Ignite Energy Resources Pty Ltd (IER) and Solid Energy are to work together to build a pilot plant to process lignite and biomass in New Zealand.

The commercial pilot plant, in a yet-to-be determined location, will be capable of expansion to a 1 million tonnes per annum facility.

IER’s proprietary technology converts low-value feedstocks into high-value oil and coal products using both lignite and biomass. The supercritical water reactor technology attacks organic polymers producing clean oils and solid products in a continuous flow.

IER’s operating reactor at Somersby, NSW converts one dry tonne of Gippsland Basin lignite into approximately two barrels of oil and 0.6 tonnes of high ranked coal. Another demonstration project on the Victorian lignite fields aims to process 60,000 tonnes of the brown coal a year to make 60,000 barrels of oil and 18,000 tonnes of high-grade dry coal.

The binding heads of agreement between Solid Energy and IER will lead to a licence agreement, worth up to A$15 million, plus royalties.

Solid Energy’s general manager new energy, Brett Gamble, said: “While the technology is still to be proven at commercial scale, it has great potential for our Southland lignite and biomass resources.”

Production of first generation technology biofuels, including wood pellets and biofuels, is now a significant and developing areas in Solid Energy’s portfolio, he said.

The application of this technology to biomass could give the company a huge step up in advancing the production of third generation technology biofuels, Mr Gamble said.

Solid Energy is currently investigating in parallel several technologies for converting its substantial lignite resources in Southland to different energy forms and products. This includes developing a lignite-briquetting plant near Mataura with GTL Energy and assessing the viability of a lignite-to-urea fertiliser plant in Southland with Ravensdown. A lignite to transport fuel project is also being investigated.

Meanwhile Solid Energy has also announced plans to develop the mining of humates, rich in humic and fulvic acids for stimulating plant production and slowing the leaching nitrogren fertilisers. Selected seams at the company’s New Vale lignite mine in Southland have tested humates containing 30 – 45 per cent humic acid.

Solid Energy said the main use for humates is likely to be for blending with other fertilisers.

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