Altona Energy PLC (LON:ANR) said talks with a South Australian coal group interested in using its pyrolysis electricity generating technology were progressing well, boosting its shares.
The South Australia-focused mining and exploration company said further discussions had taken place and that the holder of the coal assets was “very interested to progress” the talks and had invited Altona CEO Nicholas Lyth to Australia in early January 2019 for further discussions.
Altona said it would also develop a plan for the potential sale of part of its coal assets in combination with the pyrolysis technology.
The company has an exclusive license granted by Leinad Ltd to use its pyrolysis technology in Australia and China. Altona will retain 95% of any revenues generated using the license with Leinad getting the remaining 5%.
"The economics of power generation using pyrolysis technology in an area of significant shortfalls in electricity generation are appealing,” Altona’s Lyth said in a statement.
“South Australia has closed its conventional coal to electricity generation capacity so it is expected that the state government would be receptive to any future proposal to convert Altona's large coal assets into electricity in a way that meets the appropriate emissions regulations," he added.
Shares in Altona were 26% up at 85.0p in mid-morning trade.