Perth-based Cool Energy Ltd will receive a $4 million boost from Shell Technology Ventures BV to help commercialise its cryogenic gas conditioning technology CryoCell.
The agreement signed this week follows a strategic agreement Cool Energy signed with Shell in June this year.
Shell's involvement will ensure that Cool Energy is well positioned to refine the technology during field testing in early 2006 and pursue marketing and commercialisation plans.
Cool Energy's managing director Jessie Inman said the company was thrilled with Shell's investment in their technology, both financially and by providing technical assistance.
Perth-based Nido Petroleum Ltd currently has a 32.9 per cent stake in Cool Energy. Following Shell's investment, Nido's shareholding will reduce to 26.1 per cent and Nido will retain its existing voting rights on Cool Energy's Board.
In October WA Business News reported Cool Energy was considering a public capital raising if upcoming field tests on its new technology to extract prohibitive greenhouse gas carbon dioxide from gas streams were successful.
The company's 2MMscfd gas conditioning pilot plant is being delivered to Arc Energy's Xyris Field site in the Perth Basin this week. Following installation and commissioning of the plant, commercial testing will commence in March 2006 with results expected in mid-2006.
The technology could result in hundreds of gas fields around the world, currently not developed because of their high carbon dioxide levels, being brought on stream.
WA Business News also reported oil and gas major Woodside Energy had appointed Cool Energy to project manage the construction, commissioning and trial of Woodside's dehydration technology plant, along with Cool Energy's CryoCell technology.