Linc Energy Limited (ASX:LNC) Announce World-First Long Distance Fuel Trial On Synthetic Gas To Liquids Diesel

Brisbane, Feb 28, 2011 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (PINK:LNCGY) is pleased to announce that Chief Executive Officer (CEO), Peter Bond, will drive a diesel car from Queensland to Perth, a distance of over 5,500 kilometres, on ultra clean diesel fuel created from the company's own Underground Coal Gasification (UCG) and Gas to Liquids (GTL) technologies.

Peter Bond will drive from Linc Energy's Chinchilla Demonstration Facility to Perth to demonstrate that the synthetic GTL diesel produced by Linc Energy's UCG to GTL process is a reliable fuel that is cleaner and more efficient than conventional diesel and is suitable for commercialisation.

"We have gasified our own coal through our unique Linc Energy UCG process and fed it through our Fischer-Tropsch facility to create synthetic crude oil or syncrude, which was then refined into synthetic diesel, and that is what will fuel the Linc Energy car across the continent," Mr Bond said.

Synthetic diesel produced from the Fischer-Tropsch process has superior emissions properties compared with conventional diesel. The production process involves a high degree of contaminant removal, so the final product contains almost no sulphur or complex aromatic hydrocarbons that, in conventional diesel, are the main contributors to air pollution.

With widespread use, Fischer-Tropsch produced diesel has the potential to dramatically reduce the effects of transportation on urban air quality and public health. Hydrocarbon and fine dust (PM10) concentrations in the atmosphere are proven to be linked to respiratory diseases and distress. The significant reductions in these emissions with Fischer-Tropsch produced diesel use would reduce the incidence of these effects and have flow-through impacts by way of reductions in demand and lower costs in the health services sector.

"It's like putting a premium diesel fuel in your car; it gives you more bang for your buck in terms of clean burning and environmental performance," Mr Bond said.

Fischer-Tropsch diesel produced from UCG provides key markets with opportunities for energy independence as traditional resources the world over decline.

Linc Energy plans to combine its UCG and GTL technologies commercially at sites in Australia and around the world as it realises its vision of becoming the world's leader in providing cleaner synthetic diesel and jet fuels from stranded coal resources.

UCG-produced gas can also be used as a feedstock to generate power or chemical fertilisers, also resulting in reduced greenhouse gas emissions.

"We live in a world that relies heavily on coal, oil and gas for our industries and transportation needs," Mr Bond said.

"As we continue to use more energy, we need to master new and more efficient ways of accessing it. UCG to GTL is one technology process that can make a meaningful difference to improve the access to longer term, affordable energy sources," he said.

"With significant coal deposits suitable for UCG technology, Linc Energy can potentially provide alternative sources of liquid fuels and power for future generations."

"Our Queensland Demonstration Facility is the only place in the world where this unique and remarkable UCG to GTL process has been achieved," Bond said.

The Linc Energy CEO will be celebrating this global milestone with a number of special events in Chinchilla, Brisbane, Sydney, Canberra, Adelaide and culminating in Perth on Sunday 13 March 2011. The company's shareholders and supporters have been invited to share in this achievement.

The Federal Minister for Resources and Energy, Martin Ferguson will greet Mr Bond when he drives into Canberra on Wednesday 9 March. Minister Ferguson has been a long time supporter of alternative fuels for Australia, particularly those developed by Australian companies.

Linc Energy's CEO said he wanted to prove to communities and politicians that UCG to GTL fuel was the future.

"Our GTL process can also utilise normal natural gas (CH4) and turn that gas into clean diesel and jet fuel. We have a number of potential natural gas to liquids opportunities emerging around the globe," Mr Bond said.

"Linc Energy's ability to produce diesel and jet fuel from coal synthesis gas or natural gas is quickly becoming one of our key assets for the future. One of our next steps is to take the syncrude that we produce and convert it into jet fuel and maybe I'll be flying across Australia soon on Linc Energy's jet fuel," he said.

The Linc Energy Diesel Dash starts in Chinchilla on 3 March 2011, and will stop in Brisbane on 3 and 4 March, Sydney on 7 and 8 March, Canberra on 9 March and Adelaide on 10 and 11 March for a series of media and shareholder events before finishing up in Perth on Sunday evening 13 March 2011, a journey of 5,500 kilometres.

The entire event will be captured by a television documentary film crew, and the finished documentary will also be available via the Linc Energy website in the coming months.

"This is a significant milestone for Linc Energy; it is the bookend moment from when we first commenced production of liquids at our GTL facility at Chinchilla in late 2008," Mr Bond said.

"This proves that what we have been saying is not just possible, it's a reality and we are ready to take it to the next commercial step," he said.

Contact

Information for Media: Greg Meyer General Manager Corporate Communications Phone: +61-7-3229-0800 E-mail: greg.meyer@lincenergy.com.au ASX Contact: Brook Burke Company Secretary Phone: +61-7-3229-0800 E-mail: brook.burke@lincenergy.com.au Information for Investors: Justyn Peters General Manager Investor Relations Phone: +61-7-3229-0800 E-mail: justyn.peters@lincenergy.com.au http://www.lincenergy.com.au