Linc Energy hopes to secure investment from a Chinese entity within weeks, and has experienced fresh interest in an auction of Australian coal assets worth over A$1 billion.
Linc hopes to build its next commercial UCG project in China with assistance from the unnamed Chinese investor, said Chief Executive Peter Bond.
Bond declined to say how much of Brisbane-based Linc will be sold, but said the investment likely won't be has high as 10-20%.
"It'll be a relatively small stake," Bond said. "But I think in the scheme of things it will be significant to the commercialisation of underground coal gasification and gas-to-liquids. And it'll be a significant revaluation of some of the assets within the group, including the UCG technology."
Bond said the China deal was expected to be completed this quarter. "I still think we're very close to doing that," he said.