Under the memorandum of understanding, Great Northern Power Development (GNPD) and Allied Syngas Corporation will use GTL Energy's technology to transform the low-quality lignite reserves at South Heart into feedstock for use in the joint venture's proposed plant to produce synthetic natural gas by 2013.
As part of the agreement, GNPD - the largest owner of coal reserves in the United States outside of the US Federal Government - and Allied Syngas will also acquire a direct ownership stake in GTL Energy, paving the way for the three partners' collaboration in other clean energy ventures.
GTL Energy chief executive Robert French said the GTLE process would open up substantial opportunities around the world for coal gasification, as well as cleaner power generation, and would help meet the growing energy demands of Asia and elsewhere.
"Our technology allows client users to exploit currently unexploited low-rank coal resources in an environmentally responsible way, to satisfy growing energy demands in an increasingly global market influenced and sensitive to climate change issues and expectations," French added.
