Interestingly the Indonesia's are paying up for Linc's technology and service's. A shame that CNX (with apparently better technology) missed out on this one. Perhaps if Linc goes ass-up, then CNX can pick it up the project?
Still, it goes to show that the world is willing to pay up for UCG technology and services, so it's game on for CNX...
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Linc Energy Ltd has entered into formal agreements with PT Sugico Graha (Sugico) to license Linc Energy’s proprietary underground coal gasification (UCG) technology in Indonesia.
Sugico is in the early stages of developing two commercial UCG projects in Indonesia. The initial project, located in South Sumatra, will use UCG produced synthesis gas to generate electrical power. This project is in the concept phase of development. Currently, the first phase of the project is expected to be sanctioned and reach financial closure during 2016 and achieve designed specified performance during 2017.
The formal agreements consist of an Intellectual Property License Agreement supported by a services agreement.
The main feature of the agreements include:
A license to use and exploit Linc Energy’s intellectual property (IP Licence), within Indonesia.
Sugico to pay a License Fee of US$17.5 million for the UCG license upon achievement of agreed milestones and an ongoing royalty for the synthesis gas produced by UCG.
Production payment (royalty) of US$0.3125/million BTU of Syngas.
Sugico will pay Linc Energy for any services provided in relation to the development of any UCG projects at commercial rates.
