Linc signs Fuel Cell Technology agreement
Linc Energy Limited (LNC) said it has signed an agreement with UK-based fuel cell technology company AFC Energy and its related company, B9 Coal, giving it the right to test the AFC Fuel Cell Technology on hydrogen produced from underground coal gasification (“UCG”) for two years. Linc said it would purchase the first Alpha Fuel Cell System for £200,000 and has an option to invest £2.3 million into AFC Energy stock to extend the exclusivity period in perpetuity.
The company said it anticipates commencing testing of the system at Chinchilla by mid April 2010.
CEO, Peter Bond, said it made sense to marry the cleanest power generation technology with the cleanest gasification technology.
”The picture of success is that you have a UCG field producing cheap and efficient UCG gas, with this UCG gas piped aboveground a short distance on the same gas field, adjacent to the fuel cell installation,” Mr Bond said.
”There the gas is cleaned and put through a membrane to enhance the hydrogen percentage that is fed into a smart and compact Fuel Cell power generation facility that produces virtually no CO2 emissions.”
He added that the green power produced could be the ultimate answer for clean coal power and that it is one to two years away from reality.
At the close of trade Tuesday, Linc Energy shares were trading at $1.535.
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