Syngas signs Vemtec to service SA gas-fired facility
Wed, 20 January 2010
Syngas has signed a Memorandum of Understanding with Vemco Australia subsidiary Vemtec to provide peaking power offtake management and advisory services for a facility featuring 114 megawatt combined-cycle gas-fired capacity, to be located at the Clinton Coal-to-Liquids Project in MEL 3874, South Australia.
The agreement covers a 12-month period, where Vemtec will also provide electrical design, construction for connection to the national grid for the Clinton facility, as well as the design and construction for related electricity transmission lines in the area surrounding the project.
A binding agreement will be signed if further studies are favourable to both parties.
Syngas plans to begin producing premium diesel from the gasification of coal deposits located in MEL 3874, located 120 kilometres northwest of Adelaide and said it expects to extend the Clinton project’s life to more than 40 years, bringing the potential yield to more than 200 million barrels of oil equivalent. The project is scheduled to begin producing commercial-scale liquids in 2015.
Syngas also holds a 100 per cent interest in the adjoining permit MEL 3896.
Image caption: The proposed Clinton coals-to-liquids facility.
