Linc Energy, BP Australia extend MoU for supply of clean diesel
The memorandum of understanding (MoU) with Linc Energy involves BP potentially purchasing up to 70% of the initial 20,000 barrels of ultra-clean diesel and other clean fuels to be produced at the plant. Linc Energy's first plant will produce sulfur-free diesel through underground coal gasification (UCG) and gas-to-liquids (GTL) processes. When the two processes are combined, the total projected production target of the planned full-scale South Australian plant is over two billion barrels of diesel over its life. The UCG process is used to turn the coal reserves into energy by gasifying the coal underground. The resulting gas, called Syngas, is then piped above the ground as feedstock for the GTL plant. The Syngas will be used to produce liquid fuels, such as ultra-clean diesel, as well as generate electricity. Peter Bond, CEO of Linc Energy, said: "We are delighted to continue our relationship with one of the world's largest energy companies to participate in an MoU to potentially purchase the ultra-clean diesel that Linc Energy will produce."