Linc Energy Finalizes Exxaro UG Gasification Project
Linc Energy has formalized a deal with
Exxaro Resources to jointly develop its first
commercial underground coal gasification
(UCG) project in sub-Saharan Africa,
including the use of synthesis gas for power
generation and gas-to-liquids, according to
company officials. Under the agreement,
Linc said it will receive $19 million in
licensing fees, royalties indexed to
Australian CPI from Q4 2012, indexes for
synthesis gas, $6.7 million pending UCG’s
initial regulatory approval in 2017 and
engineering partnership fees. Linc Energy
officials have also agreed on a minimum
15% equity in the initial project, with an
option to buy 49% equity in all operational
parts developed by Exxaro which, in turn,
will enjoy a non-exclusive license to Linc
Energy’s UCG, officials said.
As featured in Womp 2013 Vol 06 - www.womp-int.com