Company finances: tidy
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{{#badges:CoalVictoria|Navbar-Victoriaandcoal}}''' Ignite Energy Resources''' (IER) is a small unlisted Melbourne-based company which aims to commercialise the conversion of brown coal to oil products. The company currently has no commercially operational plants. IER currently operates – through a wholly-owned subsidiary, [[Licella]] - a small scale brown coal test plant at Somersby in New South Wales.
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{{#badges:CoalVictoria|Navbar-Victoriaandcoal}}''' Ignite Energy Resources''' (IER) is a small unlisted Melbourne-based company which aims to commercialise the conversion of brown coal to oil products. The company currently has no commercially operational plants. IER currently operates – through a wholly-owned subsidiary, [[Licella]] - a small scale brown coal test plant at Somersby in New South Wales.
Despite
significant
financial
uncertainty about the company, in mid-May 2014 the
Victorian and Commonwealth government's allocated $20 million
to IER
from
the [[
Advanced Lignite Demonstration Program
]]
for
the
construction of an "$84
.
3 million pre-commercial plant producing upgraded coal products
for
local
or
export markets and
synthetic oil.
"
<ref name=
Cash
>
Federal Minister for Industry Ian Macfarlane
,
Deputy Premier Peter Ryan
and Victorian
Minister for
Energy
and
Resources
Russell Northe
, [http://www.
premier
.
vic.gov
.au/
media-centre
/
media
-
releases/9970
-
advanced
-
coal
-
projects
-
to
-
drive
-
new
-
jobs
.html "
Advanced
coal
projects to drive new jobs
"],
Media Release
,
May 16
,
2014
.</ref>
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'''There is
significant uncertainty about
the financial viability of
the company
.''' The last financial returns lodged with the Australian Securities and Investment Commission was in late May 2013. In that return an April 17
,
2013 letter from the firm's auditor -Nigel Young, a partner at the auditing firm Ernst & Young - noted that "the directors are using their best efforts to ensure that such sources of funds are obtained and continue to be available
in
the future however, should losses continue and future funding not be successful, the consolidated entity may be unable to continue as a going concern."<ref>Ignite Energy Resources, [http://www.sourcewatch.org/images/e/e3/Ignite_Energy_Annual_Report_to_the_end_of_2012.pdf "Ignite Energy Annual Report to the end of 2012"], Australian Securities and Investment Commission, May 2013, page 34.</ref> '''As of
mid-May 2014
Ignite Energy Resources has yet to file its annual return for
the
financial year
to
June 2013.'''
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On its website
IER
states that it aims to develop
the
gas resources within a 3,700 square kilometres exploration licence,
[[
EL4416
]]
in
the
Latrobe Valley in Victoria
.
The company states that it aims to use a proprietary technology to upgrade the lignite resource within the exploration licence
for
sale as PCI coal
or synthetic
crude
oil.<ref name=
About
>
Ignite Energy Resources
,
[http://www.igniteer.com/about-ignite/about.html "About"], Ignite Energy Resources website, accessed August 2013.</ref>
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==Short-listed contenders emerging from the shadows==
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In August 2013 ''The Age'' revealed that Ignite Energy Resources was one of three companies which were leading contenders for funding under the $90 million federal
and Victorian
government [[Advanced Lignite Demonstration Program]]. ''The Age'' reported that Ignite
Energy Resources
chief executive [[Len Humphreys]] refused to comment on whether the company had submitted an application for funding.<ref name=Tom>Tom Arup
, [http://www.
smh
.
com
.au/
victoria
/
china
-
powers
-
ahead
-
in
-
hidden
-
tender
-
for
-
brown
-
coal-millions-20130806-2rdjt
.html
?rand=1375833483379
"
China powers ahead in hidden tender for brown
coal
millions
"],
''The Age''
,
August 7
,
2013
.</ref
> The other two contenders at the time were [[Coal Energy Australia]] and [[Shanghai Electric Australia Power & Energy Development]].<ref name=Tom/
>
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==IER's technology==
==IER's technology==
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The company claims that its "Super Critical Water (SCW) reactor technology" can convert plant matter and "and ancient Biomass (coal) into highly valuable oil and coal products." On its website it states that it aims to "build commercial scale SCW reactors throughout the world." These "reactors", it states, "cost effectively converting low valued feedstocks into high valued products could create substantial margins."<ref name="IER">Ignite Energy Resources, [http://www.igniteer.com/company.html "A revolutionary Biomass (coal and plant matter) conversion technology with a potential world-class Biomass resource"], Ignite Energy Resources website, accessed August 2010.</ref>
The company claims that its "Super Critical Water (SCW) reactor technology" can convert plant matter and "and ancient Biomass (coal) into highly valuable oil and coal products." On its website it states that it aims to "build commercial scale SCW reactors throughout the world." These "reactors", it states, "cost effectively converting low valued feedstocks into high valued products could create substantial margins."<ref name="IER">Ignite Energy Resources, [http://www.igniteer.com/company.html "A revolutionary Biomass (coal and plant matter) conversion technology with a potential world-class Biomass resource"], Ignite Energy Resources website, accessed August 2010.</ref>
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=
=Company structure and subsidiaries==
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On its website IER states that it aims to develop the gas resources within a 3,700 square kilometres exploration licence, [[EL4416]] in the Latrobe Valley in Victoria. The company states that it aims to use a proprietary technology to upgrade the lignite resource within the exploration licence for sale as PCI coal or synthetic crude oil.<ref name
=
About>Ignite Energy Resources, [http://www.igniteer.com/about-ignite/about.html "About"], Ignite Energy Resources website, accessed August 2013.</ref>
+
==Company structure and subsidiaries==
Documents lodged with the Australian Securities and Investment Commission state that just over 208 million shares have been issued. The company’s ASIC document indicates that $196.6 million has been paid for the shares.<ref>Ignite Energy Resources, [http://www.sourcewatch.org/images/b/b1/Ignite_Energy_Resources_Current_%26_Historical_information.pdf “Current & Historical Company Extract”], September 5, 2013, page 5.</ref>
Documents lodged with the Australian Securities and Investment Commission state that just over 208 million shares have been issued. The company’s ASIC document indicates that $196.6 million has been paid for the shares.<ref>Ignite Energy Resources, [http://www.sourcewatch.org/images/b/b1/Ignite_Energy_Resources_Current_%26_Historical_information.pdf “Current & Historical Company Extract”], September 5, 2013, page 5.</ref>
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* Stradbroke Resources Pty Ltd, a wholly owned subsidiary; and
* Stradbroke Resources Pty Ltd, a wholly owned subsidiary; and
* Entrance Energy Inc.(formerly Gastar Inc.) U.S.A., a wholly owned subsidiary with a $40,000 investment.
* Entrance Energy Inc.(formerly Gastar Inc.) U.S.A., a wholly owned subsidiary with a $40,000 investment.
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==Advanced Lignite Demonstration Program==
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In August 2013 ''The Age'' revealed that Ignite Energy Resources was one of three companies which were leading contenders for funding under the $90 million federal and Victorian government [[Advanced Lignite Demonstration Program]]. ''The Age'' reported that Ignite Energy Resources chief executive [[Len Humphreys]] refused to comment on whether the company had submitted an application for funding.<ref name=Tom>Tom Arup, [http://www.smh.com.au/victoria/china-powers-ahead-in-hidden-tender-for-brown-coal-millions-20130806-2rdjt.html?rand=1375833483379 "China powers ahead in hidden tender for brown coal millions"], ''The Age'', August 7, 2013.</ref> The other two contenders at the time were [[Coal Energy Australia]] and [[Shanghai Electric Australia Power & Energy Development]].<ref name=Tom/>
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In mid-May 2014 the Federal Minister for Industry [[Ian Macfarlane]], Deputy Premier [[Peter Ryan]] and Victorian Minister for Energy and Resources [[Russell Northe]] announced that Ignite Energy Resources had been granted "$20 million for the development of an $84.3 million pre-commercial plant producing upgraded coal products for local or export markets and synthetic oil which can be refined into fuel sources such as diesel and petrol."<ref name=Cash/>
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The ministers stated that the project would involve the construction of "a pre-commercial lignite upgrading and processing plant" which would produce 3 products comprising and "oily coal, which can be separated into high energy products: synthetic crude (Syncrude) and micronized upgraded coal", " upgraded coal – for use in blast furnaces as Pulverised Coal Injection (PCI) for steel manufacturing", and "synthetic crude oil."<ref name=Cash/>
==Company finances==
==Company finances==
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In the last four years eleven directors of the company have come and gone. In August 2012 three directors, including the company Chairman, resigned.<ref>Ignite Energy Resources, [http://www.sourcewatch.org/images/b/b1/Ignite_Energy_Resources_Current_%26_Historical_information.pdf Ignite Energy Resources Current & Historical information], Australian Securities and Investment Commission, September 2013.</ref>
In the last four years eleven directors of the company have come and gone. In August 2012 three directors, including the company Chairman, resigned.<ref>Ignite Energy Resources, [http://www.sourcewatch.org/images/b/b1/Ignite_Energy_Resources_Current_%26_Historical_information.pdf Ignite Energy Resources Current & Historical information], Australian Securities and Investment Commission, September 2013.</ref>
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As of mid
-
May 2014
Ignite Energy Resources
has yet
to
file its annual return for
the
financial year to June
2013.
+
The financial returns lodged with the Australian Securities and Investment Commission for 2012 reveal a company struggling to stave off collapse. In that return an April 17, 2013 letter from the firm's auditor
-
Nigel Young, a partner at the auditing firm Ernst & Young - noted that "the directors are using their best efforts to ensure that such sources of funds are obtained and continue to be available in the future however, should losses continue and future funding not be successful, the consolidated entity may be unable to continue as a going concern."<ref>
Ignite Energy Resources
, [http://www.sourcewatch.org/images/e/e3/Ignite_Energy_Annual_Report_to_the_end_of_2012.pdf "Ignite Energy Annual Report
to the
end of 2012"], Australian Securities and Investment Commission, May
2013
, page 34
.
</ref>
==Yallourn project==
==Yallourn project==
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Environment Victoria's Mark Wakehan told the ''Latrobe Valley Express'' that "it would be nice for once to see ministers like Martin Ferguson looking at opportunities beyond coal in the Latrobe Valley and Gippsland. Unfortunately to date it seems that they view the region as a quarry."<ref>Louis Nelson, [http://www.latrobevalleyexpress.com.au/news/local/news/general/biofuel-facility-opened/2394560.aspx "Biofuel facility opened"], ''Latrobe Valley Express'', December 15, 2011.</ref>
Environment Victoria's Mark Wakehan told the ''Latrobe Valley Express'' that "it would be nice for once to see ministers like Martin Ferguson looking at opportunities beyond coal in the Latrobe Valley and Gippsland. Unfortunately to date it seems that they view the region as a quarry."<ref>Louis Nelson, [http://www.latrobevalleyexpress.com.au/news/local/news/general/biofuel-facility-opened/2394560.aspx "Biofuel facility opened"], ''Latrobe Valley Express'', December 15, 2011.</ref>
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==Commonwealth and State government funding==
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Ignite Energy Resources has been granted $20 million for the development of an $84.3 million pre-commercial plant producing upgraded coal products for local or export markets and synthetic oil which can be refined into fuel sources such as diesel and petrol.
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The project will entail:
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Building and operating a pre-commercial lignite upgrading and processing plant.
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Utilising Ignite’s unique ‘catalytic hydrothermal reactor’ technology, which rapidly converts lignite in a water slurry into an oily coal, that can be separated into high energy products.
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Production of three products:
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oily coal, which can be separated into high energy products: synthetic crude (Syncrude) and micronized upgraded coal
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upgraded coal – for use in blast furnaces as Pulverised Coal Injection (PCI) for steel manufacturing
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synthetic crude oil.
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==Exploration interests==
==Exploration interests==