The pre-feasibility study will be undertaken at a 540MW coal fired power station in South Australia and a 105MW gas fired power station in Western Australia, said the company.

Ross Smith, CEO of Enerji, said: “The deal with Babcock & Brown Power is a gamechanger for Enerji. With production in its 12 power plants reaching almost 15% of Sweden’s entire electricity production, Babcock and Brown Power represents a large potential customer for our recovered energy generation.

“At the same time it is the first step towards applications for this technology at coal and gas fired power plants, which remains the dominant means of producing electricity in Australia and elsewhere.”

Babcock & Brown Power is an electricity generation business in Australia, with interest in several power stations, representing approximately 2,800MW of installed generation capacity.