The agreement is the first under a clean coal energy alliance formed by Shell and Anglo in May 2006.

The JDA covers a number of project development phases. In the initial concept phase to conclude during 2007, Monash will carry out a study of the commercial and technical aspects, including carbon capture and storage. If successful, the study would form the basis for the feasibility phase and demonstration activities.

The Monash Energy project would involve the gasification – via Shell's proprietary coal gasification process – of Anglo American's brown coal from Victoria's Latrobe Valley for further conversion into clean transportation fuels, including virtually zero sulfur, synthetic diesel, using Shell's proprietary gas-to-liquids technology.

A number of locations have been identified as potential sites for the storage of CO2 from the process.