Ignite Energy Resources

 Ignite Energy Resources (IER) is a small unlisted Melbourne-based company which aims to commercialise the conversion of brown coal to oil products. The company currently has no commercially operational plants. However, the company aims to develop the gas resources within exploration licence EL4416 in the Latrobe Valley in Victoria and use a proprietary technology to upgrade the lignite resource within the exploration licence for sale as PCI coal or synthetic crude oil.

IER's technology
At the heart of the company's plans is a proprietary technology patent on a "catalytic hydrothermal reactor (Cat-HTR) – to upgrade the energy density of lignite to synthetic crude oil and produce an upgraded coal with similar characteristics to PCI type coal." Pulverised Coal Injection coal is a lower quality metallurgical coal.

The company claims that its "Super Critical Water (SCW) reactor technology" can convert plant matter and "and ancient Biomass (coal) into highly valuable oil and coal products." On its website it states that it aims to "build commercial scale SCW reactors throughout the world." These "reactors", it states, "cost effectively converting low valued feedstocks into high valued products could create substantial margins."

Company structure and subsidiaries
The company has three main subsidiaries:


 * Ignite Resources, which has exploration rights to the mineral resources with the coal and gas exploration licence EL4416;


 * Gippsland Gas, which is seeking to develop the gas resources within EL 4416 with joint venture partner, ExxonMobil; and


 * Licella, which currently operates a 20,000 tonne test plant, the Ignite Energy 'CAT-HTR' Demonstration Plant in Somersby in New South Wales. The plant may be moved to be co-located with EnergyAustralia's Yallourn Power Station. IER states that the plant uses a "modified Cat-HTR process" in the plant. In its annual report the company lists its investment in the company as $40 million.

The company's annual report also lists other subsidiaries as comprising:
 * Ignite Energy Resources Engineering Pty Limited Australia, a wholly owned subsidiary which the annual report lists as being a a $65 million investment;
 * Licella Fibre Fuels Pty Ltd Australia, a 87.5% owned subsidiary with a $120,000 investment;
 * Gippsland Gas Pty Ltd Australia, a wholly owned subsidiary with a $500,000 investment;
 * Gelliondale Resources Pty Ltd,, a wholly owned subsidiary;
 * Gormandale Resources Pty Ltd, a wholly owned subsidiary;
 * Stradbroke Resources Pty Ltd, a wholly owned subsidiary; and
 * Entrance Energy Inc.(formerly Gastar Inc.) U.S.A., a wholly owned subsidiary with a $40,000 investment.

Yallourn project
In July 2009 Ignite Energy Resources and TRUenergy (now known as EnergyAustralia) announced that they had entered into a Memorandum of Understanding (MoU) to develop a commercial coal to liquid fuel, chemical coal drying and fertiliser proposal demonstration plant at TRUenergy’s Yallourn mine. "IER's operating reactor at Somersby, NSW converts one dry tonne of Gippsland Basin lignite into approximately two barrels of oil and 0.6 tonnes of high ranked coal. Independent expert reports predict that the Company's coal, compared to lignite, will reduce CO2 emissions by 40% when used for power generation," the companies claimed. "Work is expected to begin in mid-July with the initial plant operating by the second quarter of 2010," the companies media release stated.

The companies initial media release stated that the initial plant was designed to process 20,000 tonnes of brown coal a year with a proposed plant at the Yallourn mine comprising three 20,000 tonne a year units. The three units, the companies claimed, could produce "60,000 barrels of IER high grade oils and 18,000 tonnes of high-grade dry coal."

Two and a half years after the original announcement, the federal Minister for Resources and Energy, Martin Ferguson "opened" what his media release stated was the "new biofuels commercial demonstration facility" at the site. At the opening, to which the media were invited, Ferguson stated that the plant, which was owned by Ignite Energy subsidiary Licella, "has been supported through a $2.3 million grant from the Australian Government’s Second Generation Biofuels Research and Development (Gen 2) Program." Ferguson also announced that Ignite and Licella had reached an agreement "to locate a commercial demonstration plant at Yallourn Power Station, in the Latrobe Valley, scheduled for mid 2012." The trial, Ferguson said in a media release, "the prospect of this venture demonstrates the opportunities that may be available to utilise the Latrobe Valley's brown coal resource in a way that reduces greenhouse gas emissions and could provide much needed jobs to the local community."

Ferguson also announced that in a second agreement, Licella and Norkse Skog Australasia formed a joint venture company, Licella Fibre Fuels "to transform multiple biomass feedstocks, including forestry residues, agricultural waste and energy crops into bio-crude oil." Ferguson's media release also stated that Licella had enetered into a Memorandum of Understanding with Virgin Australia to "support the commercialisation of a process to convert biomass into sustainable aviation fuel. Under the MoU, Virgin Australia and Licella will explore the potential of the Licella technology to produce aviation fuel, with the aim of supporting its certification and reaching a commercial off-take agreement."

Environment Victoria's Mark Wakehan told the Latrobe Valley Express that "it would be nice for once to see ministers like Martin Ferguson looking at opportunities beyond coal in the Latrobe Valley and Gippsland. Unfortunately to date it seems that they view the region as a quarry."

Exploration interests
The Department of Primary Industries lists Ignite Energy Resources as the title holder of EL 4416, an extensive exploration licence for the development of brown coal. The licence was previously held by Victoria Coal Resources. In October 2010 Victoria Coal Resources stated that "the Company’s principal asset is the brown coal rights of EL 4416. The licence area is located within the Gippsland Basin region of South East Victoria and covers approximately 3,700 square kilometers.  The in-situ brown coal quantities are estimated to be in excess of 200 billion tonnes with approximately 14 billion tonnes within the measured and indicated resource categories."

Related port projects
A March 2009 article about IER's coal-to liquids dreams with EL 4416, stated that "IER’s long term plans will see the export of liquid and solid products from Ignite Energy. The ports under consideration for this export activity are Barry Point in South Gippsland and the Port of Hastings in Western Port. The Barry Point area has been used for many years as the marine supply base for the offshore Gippsland Basin oilrigs. Currently, the Barry Point terminal can handle ships up to 5,000 tonnes in capacity. IER plans to develop a larger marine terminal around Barry Point to handle much larger ships. As for the deep water Port of Hastings, the Victorian Government is planning significant upgrades to its infrastructure to allow bulk material exports. However, the Victorian Government would need to develop appropriate rail infrastructure to allow transportation of the bulk products from the IER projects from South Gippsland to Hastings. Meanwhile, liquid exports would require pipeline infrastructure." A map with the article showed notional transport infrastructure options as being to export via the port of Geelong, to the west of Melbourne, or via Barry Point or the adjoining Port Anthony or the Port of Hastings.

Solid Energy Spurns IER
In its 2011 annual report, Solid Energy -- a New Zealand government-owned coal mining company -- noted that "in the year, we assessed a new transport fuels technology under development by Australian company Ignite Energy Resources Pty Ltd, but did not consider that the very early development status of this technology justified proceeding to a full licence agreement at this time."

Board of Directors
As of August 5, 2013 Ignite Energy's Board of Directors was:
 * Larry Ciccarelli, Chairman,
 * Dr Len Humphreys, Chief Executive Officer,
 * Matthew Reynolds, Non-executive Director,
 * Jim Overton, Non-Executive Director
 * Paul Axon, Non-Executive Director

Former directors

 * Anton Rosenberg, Chairman, resigned August 8, 2012.
 * Ian Ross, Executive Director, resigned August 16, 2012.
 * Will Jephcott, Non-Executive Director, resigned August 23, 2012.

PR Firm

 * Maxicom Public Relations, a Sydney-based PR firm. Working on the account are the firm's Managing Director, Peter Cassuben and Jackie Holt.

Lobbyists
The Victorian government's lobbyists register indicates that, as of August 5, 2013, that Ignite Energy Resources lobbyist is Scott Pearce from the small lobbying firm CNC Project Management. Neither Ignite Energy Resources or Licella are listed as having a registered federal lobbyist.

Contact details
Ignite Energy Resources Level 9, 267 Collins Street Melbourne, Victoria 3000 Australia

Tel: +61-3-8600 7000 Fax: +61-3-8600 7099 Website: http://www.igniteer.com/

Related SourceWatch articles

 * Researching coal in Victoria
 * Victoria and coal


 * Australia and coal
 * Carbon Capture and Storage
 * Carbon Capture and Storage in Australia
 * New South Wales and coal
 * Queensland and coal

External resources

 * Ignite Energy Resources, "Minister inspects ground breaking coal emissions abatement technology ", Media Release, December 14, 2011.