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Altona Energy signs MoU with GCAT Energy Group
Altona Energy announced the signing of a non-binding memorandum of understanding (MoU) with GCAT Energy Group on Tuesday, which owns the licence to use a patented pyrolysis technology which it intended to use to develop a waste recycling project in Spain.
The AIM-traded firm said the pyrolysis technology converts carbon matter into a variety of outputs including syngas which could be used to generate electricity, as well as carbon black, naphtha and diesel.
It said the technology had already been demonstrated successfully, and was expected to be suitable for the conversion of thermal coal into these outputs.
Under the terms of the MoU, GCAT and Altona confirmed their intention to negotiate terms under which Altona could be able to invest in the equity of the joint venture company formed to exploit the technology.
In addition, Altona said it would be granted a licence to use the technology in other specific projects including at the company's Australian coal project.
"I am delighted to announce this potential exciting development for Altona," said CEO Nick Lyth.
"The pyrolysis technology can process a wide spectrum of carbon matter so there are a number of potential routes to commercialisation."
Lyth said that in addition, the demonstration unit had been shown to work at high levels of efficiency and as such, the economics of the project were potentially "very attractive".
"Initial negotiations have already taken place with the owners of the licence and I hope to be able to update the market with a positive outcome soon."