Chinese steelmakers will increasingly seek out higher-quality coking coal grades as the industry makes further progress in reducing carbon emissions and moves up the steel product value chain.

The investment is part of a strategic fundraising by Reaction Engines which will support the further development of the SABRE™ concept, which combines air breathing rocket and associated technologies.

AGL and Japanese engineering firm Kawasaki Heavy Industries will head the joint venture, which plans to use coal from deposits in Victoria.