Australian private equity fund Pacific Road Resources Fund (PRRF) will take a 10% stake in Carbon Energy by acquiring the interest from Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) in an off-market trade.

Carbon Energy owns or has exclusive rights to all the intellectual property rights to CSIRO’s underground coal gasification (UCG) technology.

Brisbane-based Carbon Energy said it would continue to work closely with CSIRO, which is now a 4.8% shareholder, reports AAP.

PRRF will be Carbon Energy’s second largest shareholder, behind industrial explosives and fertilisers manufacturer Incitec Pivot, which holds an 11.3% stake.