The news pushed Blackham’s shares up 54.17% to 37c at close of trade yesterday.
Blackham has signed an agreement with Synfuels to set up a CTL Fischer-Tropsch diesel facility at Scaddan.
Both companies will carry out technical and project evaluations before signing a formal agreement to develop Scaddan around the second quarter of 2010.
Synfuels will have priority to take on the whole project design of the facility.
Once production at the plant has started, the companies plan to establish a deal to promote Synfuels’ technology in Australia.
“Coal-to-liquids in China is advancing at a rapid rate, faster than any other country in the world,” Blackham chairman Brett Smith said.
Synfuels already has set up several demonstration plants in Inner Mongolia and China.
