The technology, called CryoCell, is intended to improve the economics of gas field development world-wide by extracting CO2 contaminants from the gas (known as gas sweetening) in a form suitable for geo-sequestration or other industrial applications.
Shell’s investment in Cool Energy will consist of $1.5m in cash in return for a shareholding of about 15%, as well as a $2.5m convertible note with an option for additional funding, if required.
Cool Managing Director Jessie Inman said the investment would help fund the commercialisation of Cool's technology and Shell's technical expertise would be a major contribution to the company's development.
The investment follows a technology sharing and development agreement signed with Shell Global Solutions International BV in June this year. Cool Energy’s gas- sweetening system will undergo commercial trials in coming months.
Cool's 2 million cubic feet per day gas-conditioning pilot plant is set to be delivered to Arc Energy's Xyris Field in the Perth Basin this week. Commercial test results are due by mid next year. Cool is also managing the trial of Woodside Energy Limited's complementary dehydration technology plant at the same site.
"We are thrilled that Shell has made this investment and ensured our ability, both financially and with their technical assistance, to successfully demonstrate the technology," Inman said.
Funds would also be applied to modify or improve the plant during testing and demonstration when required, pursue market and commercialisation plans and continue research and development, she said.
Shell Technology Ventures BV said that it was strategically important for energy companies to continue to invest in and pursue new technologies such as Cool Energy's.
"Many gas fields throughout the world have been unsuitable for production because of high CO2,”, said Shell Technology Ventures BV director Erik Vollebregt.
“Cool's CryoCell may help us unlock the potential of these currently inaccessible gas fields in an environmentally sustainable manner.”
To help ensure Shell’s technical expertise is provided to the company and support its commercialisation efforts, Rob Mayfield, also with Shell Technology Ventures will join the board of directors of Cool Energy.
Apart from Shell, Cool's gas processing development partners include Woodside Energy Ltd, Nido Petroleum Limited, Arc Energy Limited, Curtin University of Technology and the Centre for Energy and Greenhouse Technologies. Nido remains the largest shareholder of Cool (26.1%, down from 32.9%).
