Altona Energy said it had signed an exclusive agreement with Cypriot company Leinad to license pyrolysis technology in Australia and China.

Pyrolysis technology is used to decompose materials at high temperatures.

Altona would be entitled to use the technology, in both Australia and China, in return for a 95% share in the net revenue it generated, with the remaining 5% passing to Leinad.

Altona said it had substantial coal resources in South Australia and that pyrolysis technology presented an opportunity to extract value from those assets that may otherwise be unrealised.

'The licensing of the pyrolysis technology gives Altona two great opportunities,' chief executive Nick Lyth said.

'The first is to unlock value in the 7.8bn tonnes of coal that we have exploration licenses over.'

'The second is to market the pyrolysis technology to relevant Chinese businesses and, with the help of our Chinese shareholders, assist with China's long-term plastic and rubber waste problem.'

'China has, like most countries, issues with waste plastic and tyres and is pursuing a long-term solution.'

At 2:28pm: (LON:ANR) Altona Energy PLC share price was 0p at 0.33p