Evergreen Energy said it has completed its Penrhyn coal testing in Australia utilizing its patented K-Fuel upgrading process.

The Penrhyn coal deposit, which is located in South Australia, is owned by Southern Coal Holdings (SCH), a joint venture between Evergreen and WPG Resources.

Evergreen said that a drilling to date has confirmed a JORC compliant measured and indicated resource of 352.4 million metric tons of coal with an additional exploration target of a further 300 to 330 million metric tons.

On 23 August 2011, the company announced that it had upgraded Penrhyn coal to K-Fuel with heating values greater than 5,500 kcal/kg prior to the rehydration necessary for shipping and storage.

SCH CEO Wayne Rossiter said the testing results are an important milestone in underpinning the company’s business model for the development of a low ranking coal beneficiation business in Australia using the proven K-Fuel process.