Arq wins backing of energy giants

AN ENERGY tech start-up has won the support of two of the world’s largest hydrocarbon players with plans to turn coal waste into the cheapest fossil fuel.

Arq Fuels has struck a deal with Vitol, the world’s largest oil trader, and Fortune 500 coal mining giant Peabody to develop a fuel which could slash costs within the global shipping industry. Vitol and Peabody have also invested $10m (£7.6m) each as part of a $50m fundraise which values the Arq business at $500m.

Julian Mcintyre, the founder and chief executive of Arq, said the coalition of industry players could help develop the cheapest hydrocarbon in the world.

The technology uses wasted coal scraps, which are too small to process and transport, to create a superfine micro dust which is far higher in energy density than traditional coal stones. The 99pc pure hydrocarbon powder could be used to create nuggets or pellets with 50pc more energy than coal, and lower carbon emissions.

However, in Arq’s first major tie-up, the powder will be used to top up bunker fuel in the shipping industry to lower the cost and sulphur dioxide emissions.

Charles Meintjes, of Peabody, said the deal was “a rare opportunity to add value to our product”.