Anglo enters coal-to-liquids race with Shell
miningweekly.co.za
Anglo enters coal-to-liquids race with Shell Resources group Anglo American and energy major Shell Gas & Power have announced the formation of an alliance in the field of coal conversion to clean energy.
The announcement effectively heralds the entry of Anglo into the coal-to-liquids sector, which is currently dominated by South Africa's former State-owned petrochemicals group, Sasol.
The project will reportedly explore technologies that produce liquid fuels from nonconventional sources, such as coal.
It initially envisages a coal-mine, drying and gasification plant, carbon-dioxide capture and storage and a gas-to-liquids (GTL) plant with associated power generation. But it also emerged that the partners are investigating an opportunity to incorporate Anglo American's Monash Energy Project, based in Australia, into the alliance.
The burning of synthesis gas generated by the gasification of coal reportedly emits significantly lower quantities of greenhouse gases and pollutants than traditional coal burning and is arguably the cleanest way to harness the energy potential of coal, which is still the world's dominant fuel source.
In a joint statement released on Thursday, the companies said they aim to maximise the benefits from the emerging field of clean-coal energy by taking selective equity positions in coal-conversion projects.
“These projects will utilise the extensive coal reserves of Anglo American and combine its mining capabilities with Shell's leading-edge technologies. The objective is to extract, gasify and then convert coal into chemicals, hydrogen, power, liquid hydrocarbons and other uses,” the statement read.
Outgoing Anglo CEO Tony Trahar commented on the alliance thus: “The ability of Anglo American and Shell to form a clean-coal energy alliance, which has the potential to develop multiple projects, will create a sustainable competitive advantage, whilst creating value for shareholders of both the Alliance partners”.
Meanwhile, Linda Cook, executive director at Shell Gas & Power, said the alliance further advances the progress that Shell has made in developing clean-coal energy. “The technology, and the potential opportunities that it will unlock, are exciting and we look forward to working with Anglo American.”
Published: 2006/05/26 |
