“Syngas Energy’s focus is on achieving large scale syngas production from its large 100 percent controlled feedstock, using commercially proven gasification and associated technologies,” GulfX said.
“It aims to produce significant quantities of power (in the form of gas as input to gas fired power stations), ultra low-sulphur high-quality automotive diesel and native-pure sulphur for sale in the industrial market place.”
According to GulfX, the fundamentals of Syngas Energy’s business are technically similar to Shell’s Monash Energy project and BP’s Hydrogen Energy development.
Presumably the scale of the business, however, is much smaller.
Syngas Energy holds two exploration licenses (one granted and one in the late stages of the granting process) near Adelaide, which cover 431 square kilometres and are prospective for lignite, otherwise known as brown coal.
“Based on the results of exploration activities undertaken by the South Australian Government, which have been publicly gazetted, a deposit in the size range of 1 to 1.5 billion tonnes of lignite is targeted in this area,” GulfX said.
Extensive exploration, including more than 330 drill holes, has already been done and Syngas Energy has begun preparing a Joint Ore Reserves Committee (JORC) compliant resource estimate for the area.
GulfX said South Australia produces little premium diesel and only about 60% of its power supply.
On completion the executive director of Syngas Energy, Merrill Gray, will be appointed as an executive director of GulfX.
Gray is a qualified geologist and process engineer, with 20 years experience in the resources sector, including 10 years with Western Mining, where she held several senior strategic planning and production management roles.
Commercial terms of the acquisition, which is subject to shareholder approval, includes the issue of 35 million GulfX shares at settlement.
Further ordinary shares are to be issued on achievement of milestones around independent laboratory gasification test work, JORC resources being delineated and securing conditional off-take supply agreements.
