Linc Energy is pushing into China to capitalise on the Asian superpower’s insatiable appetite for liquid fuels and gas.

Linc shares rose by more than 30 per cent after the Brisbane-based company announced a new joint venture in China, closing up 20 cents, or 18.69 per cent, at $1.27.

Linc produces the world’s only synthetic diesel fuel derived from underground coal gasification (UGC), which is then converted from gas-to-liquids (GTL) at its demonstration facility at Chinchilla, Queensland.

The company on Monday said it would partner with a subsidiary of Hong Kong-listed solar energy developer Golden Concord Holdings (GCL) to use Linc’s UCG-to-GTL process in China.

Linc will own 33 per cent of the joint venture while GCL will hold the remaining stake.

Linc chief executive Peter Bond said the company had been looking for a partner in China for many months.

“China’s insatiable appetite for liquid fuels and gas presents Linc Energy and GCL with a unique opportunity to capitalise on this world changing market,” Mr Bond said in a statement.

“Linc Energy is committed to commercialising UCG to GTL on a significant scale, and this most recent deal with GCL in China is the first stepping stone of many commercial opportunities I believe you will see Linc Energy produce over the months ahead.”

As part of the deal, GCL will principally arrange funding for projects undertaken by the joint venture in China via debt and other means.

GCL will also take a five per cent interest in Linc for $120 million.

The deals require approval from Australia’s Foreign Investment Review Board.