Sinopec Engineering Group (SEG) has entered into an agreement with Australia-based Greenearth Energy subsidiary NewCO²Fuels (NCF) to commercialise its CO²-to-fuel technology to the Chinese market.
The next stage of the agreement follows a letter of intent between the parties and is in compliance to the cooperation agreement previously signed between NCF and Sinopec Ningbo Engineering in May.
Both parties have agreed to the terms after conducting feasibility studies performed by SEG.
The new agreement details the responsibilities and processes required to commercialise the technology in China, as well as a plan for the installation of full-scale plants following completion of a successful pilot.
Greenearth Energy's managing director Samuel Marks said: “This agreement is transformational for NCF and the best validation to date for the technology. To have a partner such as Sinopec Engineering engaged in the commercialisation of the CO²-to-fuel technology is indeed a game changer.
“The focus now is on progressing through to the development of large-scale commercial plants after Sinopec Engineering secures the requisite funding.
“Sinopec Engineering has done an inordinate amount of work to get to the commercialisation stage and is an impressive partner for NCF in China. The Chinese market is a huge opportunity for NCF’s technology and represents potentially more than 40% of the global market. We are enthusiastic about the strength of this partnership and the near-term commercialisation opportunity in China.”