The research project is being conducted in partnership with Tipton West operator Arrow Energy at the CBM fields, 20km south-west of Dalby, where, under an EPA licence, the by-water is currently left to evaporate.

"By-water is rich in minerals and is suitable within limits only for livestock," said Dalby Council's utilities manager Terry Fagg.

“Untreated by-water is unsuitable for domestic or irrigation use and unsafe to release into the environment. There are obvious benefits all round if by-water can be successfully treated.”

The council said if the plant was successful and the process proved to be economical, it would further investigate CBM by-water as a future source for the town’s water supply.

Arrow Energy environmental and land manager Ralph Guinness said that with the entire region facing a water deficit, the prospect of easing the strain on existing water resources was attractive.

"Sourcing coal seam gas by-water instead of current methods sourcing water from the upper aquifer would mean being able to spell the upper aquifer,” Guiness said.

"At the same time, not having to draw from overland flows would see the recharging of some riverine systems.”

Dalby Town Council will invest A$30,000 over the term of the project, providing the pilot plant and water expertise. Arrow Energy will provide the by-water and up to A$10,000 assistance with on-site services such as power and access.

Testing at the pilot plant will continue until the end of the year to determine the feasibility of desalinating CBM by-water for town water supplies.

The Tipton West partners are Arrow Energy (operator and 80%) and Comet Ridge (20%).