• Carbon Energy
• Website: www.carbonenergy.com.au

Industry:

Oil, Gas & Consumable Fuels

Fiscal Year-End:

Jun 10

CNX is an emerging energy company that aims to produce clean energy and chemical feedstock from UCG syngas. CNX’s business model is underpinned by energy-related initiatives in coal and uranium, and an exposure to a sound gold business. CNX’s key projects are located in the Surat and Carnarvon basins and NE Goldfield region, in Western Australia. Through its associate Magma Metals Ltd, CNX is evaluating a new platinum discovery in Ontario, Canada.

CNX was formerly known as Metex Resources (ticker code: MEE). The company recently changed its name, following the signature of an MOU with Incitec Pivot (IPL).
The company listed on the ASX in December 1993.

Carbon Energy focuses on underground coal gasification (UCG), which produces a product called syngas. Syngas is suitable for use in feedstock (e.g. ammonia, plastics) and energy markets, and its production offers a low-cost carbon capture mechanism.

CNX's cornerstone shareholders, Incitec Pivot (IPL) and the CSIRO, provide it with several benefits. CNX has the exclusive rights to a number of proprietary modeling tools for UCG site selection, process design, and process control, while its agreements with IPL should "lock in" future revenues if current trials are successful.

Following successful completion of a commercial-scale syngas, oxygen-injected UCG trial, Incitec Pivot (IPL) will get exclusive access to CNX's UCG technology for the production of ammonia and ammonia-based products. IPL would have off-take rights for the ammonia from a possible plant. CNX has also signed an MOU with India-based Singareni to investigate UCG on Singareni's coal leases. Competitors would include other companies in the syngas field, such as Linc Energy.