Solid Energy to start lignite pre-feasibility study

Solid Energy is looking to start a “pre-feasibility” study early next year into an NZ$8 billion (US$6.2 billion) project to turn Southland lignite into liquid fuels. Chief Executive Don Elder said the initial investigation would take one to one and a half years, after which a decision would be made about a full feasibility study and engineering design. The two studies could cost up to NZ$40 million (US$30.4 million). A final decision to proceed would depend on the international price of crude oil and global energy supply. Lignites-to-liquid fuels projects are feasible when benchmark crude oil prices are above US$55 a barrel. (October 11, 2007)