27th May 2015
Ignite Energy Resources Ltd (IER) Signed A$30M Investment With PT Bukit Asam (PTBA)
We are pleased to announce that we have signed a A$30M investment with PT Bukit Asam (PTBA), one of the largest and most profitable coal companies in Indonesia. PTBA’s investment is into our subsidiary, Ignite Resource Pty Ltd (IRPL), and will contribute to the financing of IRPL’s A$84M project under the Advance Lignite Demonstration Program (ALDP).
The ALDP is a commercial scale reactor module of IRPL’s patented Catalytic Hydrothermal Reactor (Cat-HTR) technology, which economically converts low-value lignite into high-value synthetic crude oil (Syncrude) and a metallurgical-type coal product (Upgraded Coal), used in steel production or low emission power generation
This investment by our strategic partner PTBA will contribute to national fuel security in both Australia and Indonesia. Through the application of IER’s Cat-HTR technology across both companies’ extensive lignite resources, the opportunity exists to produce a significant quantity of cleaner energy products. We look forward to working together to establish and grow an export market for these new higher value products.
At commercial scale, independent economic modelling by the University of Sydney (based on the results of IRPL’s Large-Scale Demonstration Plant) suggests that Syncrude and Upgraded Coal can be produced by the Cat-HTR platform at a cost comparable to the cost of production of conventional oil.
“This joint-venture investment into the Cat-HTR technology development is part of Bukit Asam’s vision to become a world class energy company,” says Anung Dri Prasetya, PTBA’s Business Development Director.
For more information on this joint venture, please see the full press release here.
Dr Len Humphreys
Chief Executive Officer
Ignite Energy Limited