Altona Energy has entered into a memorandum of understanding with clean energy company CRI, holder of proprietary technology for the production of fuel grade renewable methanol from CO2 and hydrogen.

Under the terms of agreement, Altona and CRI will work together to evaluate the application of CRI’s technology at the Arckaringa CTL project, through using the CO2 captured for sequestration, with the hydrogen produced in the synthesis gas in the Fischer-Tropsch Process production of diesel.

The concept proposed to be evaluated by Altona and CRI is for a scalable renewable methanol plant at Arckaringa, producing 100 million liters per year of renewable methanol.

CRI is currently constructing a plant in Iceland adjacent to the Svartsengi geothermal power station, that will be capable of producing 5 million liters of renewable methanol per year.

The Svartsengi plant is scheduled for commercial operations in the third quarter of 2011.