Wednesday, May 31, 2006

Cool Energy has commenced field trials of a new gas

Perth headquartered Cool Energy has commenced field trials of a new gas processing plant, incorporating two gas treatment technologies, at ARC Energy's Xyris site in the Perth Basin.A key component of the gas treatment is Cool Energy's CryoCell technology. The CryoCell, a new technology that removes CO2 from natural gas streams, will undergo an extensive testing program over the next five months. The tests will involve a wide range of process conditions, maximising the amount of data gathered to determine optimum operating parameters and configuration for commercial use. The CryoCell technology aims to unlock previously uneconomic gas reserves due to a high CO2 content and help to fulfill the rising demand for energy. The processing plant will also test Woodside's new gas dehydration technology, which aims to remove water from natural gas streams. The dehydration technology is a fundamentally new concept in extracting water from natural gas.Cool Energy plans to test the gas dehydration technology initially for approximately four weeks before adding the CryoCell technology in series."The commissioning of the new gas processing plant is a significant milestone as we celebrate entering a very important development phase. The success of the tests for the gas dehydration plant and the CryoCell will determine the optimum conditions the company will seek for its first commercial plant," Ms Jessie Inman, Managing Director of Cool Energy, said."Cool Energy is aiming to complete the trials of the gas dehydration and CO2 removal plant and begin a commercial project by the end of the year.Importantly, the field trial in Perth Basin will also provide live data to analyse all aspects of the technology including those that may need further research and development."Both technologies were developed at WA's Curtin University of Technology. The Australian Government is providing financial assistance for the CryoCell through an AusIndustry Innovation Grant.Shell Global Solutions International of The Hague will provide advice and assistance to Cool Energy during the CryoCell testing period. Shell Technology Ventures is a significant shareholder in Cool Energy.The gas dehydration technology is being field tested by Cool Energy on behalf of Woodside. The testing is on schedule and budget.It is still early days, however the commissioning is a significant milestone in the evolution of the project. Data will be collected from the plant during the testing program. After completion of all of the tests, the results will be analysed in the third and fourth quarter of 2006.About Cool EnergyCool Energy is headquartered in Perth, Western Australia.Cool Energy's technology was initially developed by Curtin University of Western Australia.In gas feedstocks with higher concentrations of CO2, Cool Energy's technology will permit the elimination of dedicated solvent processes and their supporting utilities, and thus allow operators substantially lower capital and operating costs.Cool Energy's gas processing development partners include ARC Energy Ltd, Centre for Energy and Greenhouse Technologies Pty Ltd, Curtin University of Technology, Nido Petroleum Ltd, Process Group, Shell Global Solutions International and Woodside Energy Ltd.

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