Alternative Fuels

High Density Natural Gas

State Gas has developed a “first of its kind” in Australia CSG to HDNG plant (“the HDNG Facility”). When implemented in conjunction with virtual pipeline (“VP”) trailer technology, the HDNG Facility will be able to deliver up to 1.7TJ/day of pipeline quality natural gas to end users in the Southern Bowen Basin and surrounding areas. This technology has a range of benefits and potential use cases:

delivers substantial environmental benefits to gas producers, as it provides a reliable method for capturing and commercialising production testing gas which has historically been released to the atmosphere;
provides a new path to market for pipeline quality natural gas which the Company believes will become increasingly important across a range of industries, including critical minerals, while the economy continues its long-term transition to renewable energy sources;
is modular and can be efficiently expanded and easily relocated to support gas testing and processing opportunities in new locations; and
provides access to a new fuel source for end users who are seeking access to smaller, flexible quantities of natural gas, but don’t have access to traditional pipeline infrastructure and need to accelerate a transition away from diesel.

CSG is provided to the HDNG Facility by a gathering system connected to the Company’s Rougemont 2/3 dual lateral exploration and appraisal well (“Rougemont 2/3”), located within the Rolleston West Project area (ATP 2062)
Rougemont 2/3 produces high-energy content CSG with minimal impurities (methane >92%) which is dehydrated and compressed at the HDNG Pilot Plant
VP technology sourced through State Gas’ partnership with Mine Energy Solutions, allows delivery of HDNG by truck, in a range of up to 300km from the plant
State Gas has an initial offtake agreement in place to support an ongoing hybrid engine truck trial at a local coal mine in the Southern Bowen Basin (increasing to 300GJ/day, but with opportunity to scale)
State Gas has created substantial IP in the course of engineering, designing and constructing the HDNG Pilot Plant and in conjunction with its partners, is now evaluating how this technology might be more broadly applied (including design and construction of future HDNG plants that meet customer’s specific fuel demand circumstances)
HDNG Pilot Plant cost approximately $8 million (excluding research and development costs, civil works and gas gathering system)
1.5 year pay-back period at full plant operating capacity (1.7TJ/day)
Engineering progressed on next iteration of plant design – reduce fabrication costs and improve portability

CSG is provided to the HDNG Facility by a gathering system connected to the Company’s Rougemont 2/3 dual lateral exploration and appraisal well (“Rougemont 2/3”), located within the Rolleston West Project area (ATP 2062)
Rougemont 2/3 produces high-energy content CSG with minimal impurities (methane >92%) which is dehydrated and compressed at the HDNG Pilot Plant
VP technology sourced through State Gas’ partnership with Mine Energy Solutions, allows delivery of HDNG by truck, in a range of up to 300km from the plant
State Gas has an initial offtake agreement in place to support an ongoing hybrid engine truck trial at a local coal mine in the Southern Bowen Basin (increasing to 300GJ/day, but with opportunity to scale)
State Gas has created substantial IP in the course of engineering, designing and constructing the HDNG Pilot Plant and in conjunction with its partners, is now evaluating how this technology might be more broadly applied (including design and construction of future HDNG plants that meet customer’s specific fuel demand circumstances)
HDNG Pilot Plant cost approximately $8 million (excluding research and development costs, civil works and gas gathering system)
1.5 year pay-back period at full plant operating capacity (1.7TJ/day)
Engineering progressed on next iteration of plant design - reduce fabrication costs and improve portability