The LNG Micro-Cell process enables the conversion of natural gas to liquid natural gas in small-scale production by means of an innovative transportable refrigeration system.
This technology would enable commercialisation of gas fields marginalised by high carbon dioxide levels or other contaminants or by remoteness and/or small size, Nido managing director Dave Whitby said.
It was developed at Curtin University's Woodside Research Facility with support from Shell Global Solutions and the technology is owned by Cool Energy, which Nido and Arc have bought shares in.
Nido is the largest single investor with a 36% stake in Cool Energy Pty Ltd. Nido plans to divest a portion of its shares to ultimately hold 23% of the company once subscriptions have been taken.
Investment vehicle Australian Development Capital holds about 23%, while Arc Energy will have a 7% stake in return for letting Cool Energy use its facilties if the project proceeds to demonstration stage. Other stakeholders include Curtin University and the Centre for Greenhouse Technologies Pty Limited (CEGT).
Whitby said the new technology had already proven successful at laboratory scale and a 2 million cubic feet per day pilot plant of the Cool Energy process is due to be field-tested at one of Arc’s Perth basin gas fields later this year with results expected by the end of 2005.
"This technology has the potential to solve a significant problem for the oil and gas industry worldwide – the depletion of oil stocks, related focus on gas, and the environmental issues surrounding CO2 emissions. There is significant interest in this technology both nationally and internationally," Whitby said.
"Nido's interest and involvement in Cool Energy complements our value creation strategy to place focus on the development of marginal gas fields in Australia and around the world.”
The LNG Micro-Cell process could not only remove contaminants, particularly CO2 in liquid form, from gas feedstocks but could also efficiently sequestering CO2 or make it suitable for other purposes, according to Whitby.
It could also economically harness flared gas and coal-bed methane and offer operational costs up to 25% lower than traditional CO2 removal methods, he said.
The Commonwealth Government has approved a $1.9 million start grant for Cool Energy. The Start Grant and the total private investment of A$3 million will give Cool Energy sufficient funding over the next two years to complete its trial and implement a market and commercialisation plan, Whitby said.
Jessie Inman, who has over 20 years experience in international marketing and business development, has been appointed as Managing Director of Cool Energy.
Allan Hart, Technology Development Manager, is an engineer and gas processing expert with more than 20 years international experience in the development of gas assets. Dave Whitby will join the Board of Cool Energy, as will Australian Development Capital Limited director Claire Poll.
