Solid Energy's pilot briquetting plant south of Mataura is on track to be completed by the middle of the year.
Solid Energy general manager of lignite conversion Greg Visser said the $29 million project was on schedule.
"The structural installation of the main process tower is finished and we aim to have all installation of major coal processing equipment completed this month.
"The briquetter and compactor are in place, and the dryer installed on its pedestal, ready to be connected."
The installation of the utility systems and coal conveyors continued, and the boiler stack was ready for connection to the boiler. Electrical installation was also under way, connecting mechanical instruments to the control room.