China's Shanxi Coal Transportation and Sales Group and Australia's Carbon Energy and have signed a licensing agreement involving the development of an underground coal gasification project in Shanxi province, Carbon Energy said Monday in a statement.
ASX-listed Carbon Energy said it will license its technology to Shanxi Coal for a fee of $7.5 million payable within 30 days of execution and the balance upon achievement of certain project milestones.
Carbon Energy said it has not yet received the initial technology payment from Shanxi Coal, but added that it has received assurances from the latter that it is fully committed to proceeding with the project.
Headquartered in Brisbane, Carbon Energy said it specializes in UCG. It said it has two wholly owned assets in southeast Queensland's Surat Basin.
