Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Solid Energy leaves Mataura briquette plant with GTL

Solid Energy leaves Mataura briquette plant operations with GTL Energy

By Paul McBeth

June 20 (BusinessDesk) - Solid Energy is handing over operations at its $29 million lignite briquette production plant in Mataura to GTL Energy as the financially stricken state-owned coal miner looks to exit the investment.

The two companies have been in discussions since May on the commercial arrangements for the plant’s ongoing operations, and GTL is being given the opportunity to demonstrate the plant’s capabilities on a continuous production basis, and to establish the longer-term value of the plant, Solid Energy interim chief executive Garry Diack said in a statement.

“Although we will continue to mine and market New Vale lignite, it is now certain that Solid Energy will not be continuing with lignite upgrading in the foreseeable future,” Diack said. “While we continue to believe the lignite briquettes produced with GTL Energy’s technology have good potential, given our current status, Solid Energy does not see itself as the long-term owner of the plant.”

Solid Energy is still in talks with its banks and Treasury officials as part of a wide-ranging review of the business, which posted a $40 million loss last year, mothballed its Spring Creek mine and dropped or put up for sale a range of projects including plans to turn lignite into diesel.

GTL Energy’s coal upgrading technology is used at the plant as part of a license agreement signed in 2011. The company was set up to commercialise methods of upgrading low rank coal, and the plant was intended to service the South Island domestic market, plus provide product for export trials.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Fred Schulte, GTL Energy chief executive, said being able to keep the plant running “will underpin the deployment of the GTLE Technology globally, in particular the large scale project under development in Indonesia.”

The two companies set up a joint venture after GTL Energy’s June 30, 2012 balance date, where GTL would undertake operations at the plant to process the coal, the company said in its latest financial statement.

GTL Energy was owed almost $400,000 by Solid Energy as at June 30 last year, which was payable on the successful commissioning of the plant and satisfaction of technology performance warranties.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.