Linc Energy has entered into a Memorandum of Agreement with
Syntroleum Corporation (USA), one of the world leaders in Coal To
Liquids (CTL), whereby Linc has access to their CTL technology.
Syntroleum has designed, built and currently operates a CTL plant in
Tulsa, Oklahoma using its unique air based CTL process.

CTL is the generic term used to describe the process of converting a
gas into a liquid hydrocarbon product. This technology has already been
tested and proven by numerous companies including major oil companies.
The combination of UCG and CTL is subsequently called Coal to Liquids
(CTL), as the initial energy source is coal.

Basically, a CTL plant consists of three main processes:

Syngas Production: this process converts a solid, liquid or gas feedstock (usually natural gas) into hydrogen and carbon monoxide.

UCG syngas is already a mix of hydrogen and carbon monoxide, therefore this first process does not apply to Linc Energy.

Fischer-Tropsch (F-T) Synthesis: it is the heart of the
process. The syngas is converted into liquid hydrocarbons, through a
catalytic reaction using cobalt as catalyst. The syngas reacts with the
cobalt, joining together simpler hydrocarbon chains contained in the
gas, to create a longer liquid hydrocarbon chain (syncrude).

Refining: the liquid hydrocarbon is then filtered and refined to produce the end product fuels: LPG, Naphtha, Jet fuel and Diesel.

These end products are essentially free of sulphur, olefins, metals,
alcohols and aromatics. CTL liquid fuels are superior to conventional
refinery fuels.

As a part of its ongoing CTL R&D program, F-T trials have been
performed at the University of Kentucky's Centre of Applied Energy
Research (CAER). A similar syngas composition to the one produced at
Chinchilla is being used as feedstock to determine the best catalyst,
operating temperature, pressure and other variables.

After having successfully produced diesel at the University of
Kentucky Linc Energy strongly believes that the partnership with
Syntroleum will enhance and expedite the development of Linc Energy as
a leading ultra-clean diesel producer.