Leigh Creek Energy is set to receive the funding required to accelerate stage one commercial works at its namesake energy project in South Australia.
Funding from US-based Energy Exploration Capital Partners will amount to up to $18 million, allowing for a 5MW power plant to be built and power to be supplied to the national grid.
Leigh Creek also plans to produce nitrogen-based fertiliser and/or hydrogen products at the project using in-situ gasification technologies.
The company claimed that the gasification technology was low capital, with no surface gasification facilities required.
Leigh Creek managing director Phil Staveley said the funding commitment followed the South Australian Government approval of the project, granting Leigh Creek the licences needed to move the project from development to production.
“We look forward to 2021 and beginning construction on our stage one commercial development, consisting of a (five megawatt) power plant supplying power directly to the national grid,” he said.
Energy Exploration Capital Partners will participate in a $6 million share placement, with the proceeds to be received by Leigh Creek in the next week.
The company also has the option to raise an additional $12 million through share placements.
The Leigh Creek energy project sits within the existing but disused Leigh Creek coalfield. Its resources are not economic to mine, but can produce urea fertiliser with a hydrogen optionality via gasification.
Fifteen gigajoules of syngas produced from the coal can provide 20 wheelbarrows of fertiliser, 1000 kilometres of fuel or four days of electricity for households.
Leigh Creek has made the project’s environmental impact report open for public review until February.