Adani Enterpises inks MoU with Carbon Energy

Share:

Editor’s Synopsis

Adani Enterprises Ltd, the flagship company of India’s infrastructure conglomerate the Adani Group, today announced the signing of a Memorandum of Understanding with Australia’s Carbon Energy Ltd to set up a joint venture to explore opportunities in the Underground Coal Gasification (UCG) assets in India.

 

Adani Enterprises Ltd, the flagship company of India’s infrastructure conglomerate the Adani Group, today announced the signing of a Memorandum of Understanding with Australia’s Carbon Energy Ltd to set up a joint venture to explore opportunities in the Underground Coal Gasification (UCG) assets in India.

 

UCG is a process of converting un-worked coal into a combustible gas which can be used as a fuel for heating, power generation, manufacture of hydrogen, syngas or even diesel fuel.

 

Commenting on the development, Harsh Mishra, Adani Group’s President - Corporate Planning said, “We have selected Carbon Energy as our technology partner for this important submission to Coal India as it is a global leader of UCG and has superior technology that will be of tremendous help for the upcoming tender. The Adani Group is committed to creating win-win situations through partnerships for mutual benefit and this is a huge step in that direction.”

 

Mishra further added, “The Adani Group is clearly focused on the energy sector and constantly strives to enhance our coal value chain. Our initiatives in India, Australia and Indonesia will bring us closer to achieve our stated goal of 20,000 MW of power generation, 200 million MTPA of coal mining, 200 million MTPA of cargo handling and owning 20 capesize ships by 2020.”

 

Andrew Dash, Managing Director, Carbon Energy, noted that partnership with the Adani Group will accrue significant benefits to Carbon Energy. Dash said, “Carbon Energy will now be pursuing projects in three continents with the addition of India to our existing interests in Australia and in Chile. Adani is a major player in the Indian coal and power industries and has already established itself in Queensland, Australia. We are looking to working with Adani Group to build Carbon Energy’s UCG project base in India.”

 

The MoU is valid over next 18 months during which the two companies are expected to jointly submit a bid to set up an UCG project as per Coal India’s prescribed requirements. If successful, Adani Enterprises will bear all the exploration costs including those of Carbon Energy’s until it has been successfully conducted and a suitable UCG reserve has been established.

 

Only after the establishment of the UCG reserve, the two firms will anticipate forming a JV in India in which Adani Enterprises will hold 75% with Carbon Energy holding the remaining 25%.

 

If successful, the proposed partnership will further enhance the Adani Group’s position as India’s largest thermal coal player and also give it the required fillip for a rapid expansion of its power and coal businesses, transforming it into the largest private sector mining company in India.

 

These initiatives are part of the Adani Group’s strategy to emerge as a global player in development and operator of mines and supply coal to support affordable power generation in India. It has already has signed contracts to mine, move and supply 110 million MTPA of coal for use by state owned power utilities in India.

© 2015 Adani Group