The projects will utilise the extensive coal reserves of Anglo American with Shell gasification technology. The objective is to extract, gasify and then convert coal into chemicals, hydrogen, and power.

The partners are currently investigating Anglo American’s Monash Energy Project, based in Australia, which is exploring technologies to produce liquid fuels from sources such as coal. The project initially envisages a coalmine, drying and gasification plant, carbon dioxide capture and storage and a gas-to- liquids (GTL) plant with associated power generation.

Tony Trahar, chief executive of Anglo American, said: “The ability of Anglo American and Shell to form a clean coal energy alliance, which has the potential to develop multiple projects, will create a sustainable competitive advantage, whilst creating value for shareholders of both the Alliance partners.”