Linc Energy
| Company type | Public company |
|---|---|
| Industry | Energy |
| Founded | October 29, 1996 |
| Defunct | May 2016 |
| Fate | Entered voluntary administration and liquidation |
| Headquarters | Brisbane , Australia |
Area served | Australia, North America, United Kingdom, Poland, South Africa, China, Vietnam, Uzbekistan |
| Products | Synthetic fuels, coal mining, oil and gas exploration and production, underground coal gasification technology |
Linc Energy was an Australian-based energy firm focused on producing synthetic fuels derived from coal, alongside traditional oil and gas ventures. The company pioneered and commercialised its own underground coal gasification technology, generating gas utilized for synthetic fuel production through gas-to-liquid processes as well as for power generation. Its main office was located in Brisbane, Queensland.
In April 2016, Linc Energy entered into voluntary administration and at the creditors' meeting in May, liquidation was unanimously approved.
History
Established on 29 October 1996 under the name Linc Energy N.L., the company changed its name to Linc Energy Ltd on 17 November 2000. It made its debut on the Australian Securities Exchange (ASX) on 10 May 2006 and later listed on New York’s OTCQX in December 2007. On 19 December 2013, Linc Energy withdrew from the ASX and secured a listing on the Mainboard of the Singapore Exchange.
The Chinchilla Demonstration Facility commenced operations in July 1999, producing its initial gas within that year. Originally, it employed underground coal gasification technology licensed from Ergo Exergy Technologies of Canada, but in 2006 transitioned to a collaboration with Russia's Skochinsky Institute of Mining for technical expertise, engineering, and consultation services.
In 2005, Linc obtained a license for Syntroleum’s proprietary gas-to-liquid technology and constructed a GTL pilot plant at Chinchilla, which began operation in August 2008 with the first synthetic crude produced by October of that year.
November 2007 saw Linc enter into a joint venture with BioCleanCoal Pty Ltd aimed at developing a bioreactor capable of converting carbon dioxide into oxygen and biomass.
On 20 December 2007, Linc acquired majority control of SPC Yerostigaz, an underground coal gasification company based in Uzbekistan. The following year in October, it merged with SAPEX Limited, a South Australian oil and gas company, thereby acquiring exploration tenements within the Arckaringa, St Vincent, and Walloway basins.
In 2009, Linc expanded its presence in North America by purchasing coal tenements located in Montana’s (Powder River Basin), Wyoming, and North Dakota regions from GasTech Inc. The subsequent year it acquired tenements in Alaska’s Cook Inlet Basin from GeoPetro Alaska while divesting non-core Queensland coal assets to Adani Mining Pty Ltd for A$3 billion.
Between 2010 and 2011, Linc increased its shareholding in UK-based alkaline fuel cell manufacturer AFC Energy from 10% to 12%. Partnering with AFC Energy and B9 Coal, it commissioned the Alfa System hydrogen fuel cell at Chinchilla, which utilized hydrogen produced via underground coal gasification as its input fuel.
In 2011, Linc acquired several oil fields from Rancher Energy and ERG Resources along with Renaissance LLC to gain control over the Umiat oil field. By April 2012, it had formed a partnership with Hong Kong-listed Golden Concord Holdings (GCL), which invested A$120 million for a 5% stake aimed at commercialising UGC-to-GTL technology within China.
On 23 January 2013, Linc announced a major tight oil discovery near Coober Pedy, with estimates ranging between . That same year, its subsidiary New Emerald Coal took ownership of the Blair Athol coal mine.
In July 2014, Poland’s Ministry of Environment granted preliminary approval for Linc to initiate an underground coal gasification project and awarded its third coal exploration license in the country. The firm also planned drilling operations targeting deeper zones within South Australia’s Arckaringa Basin.
Voluntary Administration
On 16 April 2016, after coal prices plummeted from US$130 to US$55 per tonne, Linc Energy voluntarily entered administration with PPB Advisory appointed as the administrator. By 13 May 2016, the administrators advised liquidation, highlighting that Linc Energy had been solvent prior to administration and that no offences or recoveries were identified. During the creditors' meeting held on 23 May 2016, the decision to proceed with liquidation was unanimously supported. The administrator's report linked the company’s financial difficulties to the steep decline in global commodity prices.
Operations
Linc Energy maintained operations in Australia, North America, the United Kingdom, Poland, South Africa, China, Vietnam, and Uzbekistan. In addition to underground coal gasification (UCG), its activities encompassed conventional coal mining as well as oil and gas exploration and production.
The company owned the Chinchilla Demonstration Facility, situated approximately 300 km west of Brisbane, recognized as the world’s first gas-to-liquid (GTL) plant utilizing synthesis gas derived from UCG. This site comprised five underground coal gasifiers, a GTL pilot plant, a laboratory, and a wastewater treatment facility.
Plans were underway for a 20,000-barrel-per-day GTL plant in South Australia’s Arckaringa Basin, designed by Aker Solutions and powered by synthesis gas produced through UCG. BP retained an option to acquire 70% of the diesel output from this plant.
In China’s Yining mining region, Linc Energy collaborated with Xinwen Mining Group on a coal gasification initiative. Within Vietnam’s Red River Delta area, it partnered with Vinacomin, Song Hong Energy, and Marubeni on the UCG Tonkin project.
The company also worked alongside UK Coal in the United Kingdom and Exxaro in South Africa, holding a coal exploration lease in Poland’s Upper Silesia Coal Basin. In December 2012, Linc Energy commenced assessing UCG opportunities with Ukrainian energy firm DTEK.
Its subsidiary Yerostigaz, based in Angren, Uzbekistan and founded in 1961, operated UCG facilities that generated around one million cubic meters of syngas daily for supply to the Angren Power Station.
Controversy
In 2014, Linc Energy faced charges from the Queensland Government concerning alleged environmental damage linked to its Chinchilla Facility. The company maintained these allegations did not significantly impact its financial or operational status and pledged to mount a robust defense.
By 2021, all charges against former Linc Energy executives were dismissed after the Director of Public Prosecutions determined there was insufficient evidence to establish serious environmental harm. Former executive Peter Bond condemned the prosecution as a "witch hunt," accusing the Queensland Government of squandering $50 million of public funds on the case.