Australian Future Energy (AFE) subsidiary Great Northern Energy has acquired a 270 million tonnes JORC-compliant coal resource lease near Pentland, Queensland.
Synthesis Energy Systems has 40% ownership in AFE, an Australian company.
Synthesis Energy Systems vice-chairman and AFE deputy chairman Robert W Rigdon said: “When developed, this significantly sized Pentland resource acquisition of marketable coal additionally represents a significant amount of unmarketable coal from which AFE can manufacture low-cost urea and substitute natural gas, among other products.
“We believe that AFE is smartly connecting significant resources to its portfolio of project developments underway, which are all intended to manufacture products such as fertilisers, power, and fuel gas in a very clean and low-carbon manner, while simultaneously delivering positive financial performance.
“We expect that the future benefits to SES from the AFE business will result from nearer-term financial results expected from ongoing operations such as Batchfire and from the potential scope of technology and equipment SES must provide into the AFE projects. We anticipate that AFE will continue to gain momentum and look forward to more news from AFE.”
Synthesis Energy Systems president and CEO DeLome Fair said: “Australian Future Energy is an exciting regional clean energy platform for SES. We are pleased to be increasing our ownership and long-range position in low-cost coal resources in Australia and to be aligned with such a knowledgeable and visionary Australian team.”
AFE has completed its first of two payments, in accordance with the terms of the definitive agreement for acquiring the mine development lease. The final payment is scheduled to be completed within six months.
The coal quality is that of a JORC compliant thermal coal. The JORC Code is the Australasian code for reporting results, mineral resources and ore reserves.
Synthesis Energy Systems is a technology company focused on generating clean, high-value energy from low-cost and low-grade coal, biomass and municipal solid waste through its proprietary technology.