Incitec Pivot Limited (IPL) is one of Australia’s largest manufacturers of agricultural fertilizers and industrial chemicals and is an ASX Top 50 company. In May 2008, Carbon Energy and IPL announced a Memorandum of Understanding (MOU) involving exclusive global rights to the use of Carbon Energy's UCG technology for ammonia and ammonia derived product manufacture, with Carbon Energy having an entitlement to joint venture participation in respect of ammonia production.
Late in 2010 Carbon Energy and IPL completed a study with international consultants, Ammonia Castle that confirmed the opportunity for the production of ammonia and synthetic natural gas. The study concluded that underground coal gasification (UCG) syngas has the potential to reduce capital costs of producing ammonia and that pipeline quality gas (synthetic natural gas) can be produced at market competitive rates. The results of the study are very positive for the partnership and in-line with Carbon Energy’s medium term strategy to utilise UCG gas for the manufacture of high value produces such as ammonia and chemicals.
Based in Chile, Antofagasta Minerals is one of the world’s largest mining and exploration companies. In December 2009 Carbon Energy signed its first international agreement with Antofagasta Minerals following the completion of a two year due diligence process by Antofagasta. During this process the capabilities of UCG companies from around the world were rigorously assessed to determine the most suitable partner to develop its deep coal deposit in Mulpun 800km south of Santiago.
Antofagasta Minerals formed a new energy division, Mulpun Energy, to undertake the trial project with Carbon Energy. Together the partnership has made significant progress.
Upon completion of agreed milestones Carbon Energy has the rights to a 30% interest in the Mulpun deposit.
