Talon Energy Ltd (ASX: TPD) has executed a Shareholder Agreement (SHA) with Applied Vapor Solutions LLC (AVS) in respect of a 60% shareholding in GreenFlame Energy Pty Ltd.
GreenFlame holds an exclusive patent licence for the application of a zero CO2emissions Superheated Steam Technology process that simultaneously enhances recovery of hydrocarbons (methane) from coal seams whilst sequestering CO2and producing hydrogen.
GreenFlame has also entered into a conditional agreement with Strike Energy Limited for the acquisition of Strike’s 67% participating interest in PEL96, located in the South Australian Cooper Basin. PEL96 holds the Strike operated Jaws deep coal seam gas project. PEL96 will be the initial focus for GreenFlame in the application and pilot appraisal of the AVS patented Superheated Steam Technology.
Because this Superheated Steam Technology can substantially increase coal rank on contact by pyrolysis, it essentially does in seconds what takes nature and the Earth’s geological coalification processes millions of years to do.
he technology also has the potential to significantly enhance both CO2storage (sequestration) and methane production from coal seams. Sequestering CO2at supercritical temperatures also significantly enhances coal seam permeability and methane production, even from low rank, low gas content and undersaturated coals. Indeed, the process actually generates methane, and increases CO2storage to where pyrolyzed coals can hold over 100x more CO2than conventional sandstone reservoirs.
Talon’s Managing Director, David Casey, said that with hydrogen production a by-product of coal pyrolysis and CO2sequestration, Talon has a unique opportunity to be at the forefront of the next energy revolution while still meeting the emission constrained energy demands of today.
With up to 135m of coal, and some of Australia’s thickest coal seams, PEL96 has been identified as an ideal trial candidate for both CO2sequestration and enhanced coal seam gas production, as well as having the potential for zero emissions electricity generation.
With PEL96 having substantial pre-existing infrastructure, and wells requiring minimal retrofitting, Talon can move rapidly into the technology appraisal phase without lengthy approvals processes and very costly drilling programs. As a result of this existing infrastructure, initial trials are capable of being funded from Talon’s current cash reserves, and subject to final documentation, commencement of field activities is being targeted for early 2022.
Commenting on the transaction David Casey said:
“The transaction with AVS and GreenFlame is an important step for Talon and the industry in general. Increasingly, our industry is seeing the requirement from governments, regulators, and investors, to demonstrate the ability to work towards a low emission energy future. Talon is cognisant of these requirements and takes its position as a player in the energy transition seriously,” Mr Casey said.
“Thanks to the considerable existing infrastructure on PEL96 we are confident that the initial pilot appraisal and application of GreenFlame’s licensed compact Superheated Steam Technology can be conducted on an extremely cost-effective and timely basis. It is not often that an opportunity presents itself where a potential ground-breaking technology can be so readily applied to an existing asset.
“If proven successful, this transaction will place Talon at the forefront of not only emissions reduction, but also hydrogen production and enhanced gas recovery from its own, and potentially other coal seam gas projects. All three of which are important factors in the global low emission energy transition process. With licencing to apply the technology to seven additional countries overseas, we see an exciting and very large opportunity in GreenFlame for Talon.”
