Great accouncement: Back to its 5 Nov of 42.5 I reckon
Carbon Energy (ASX:CNX) has entered the fourth week of its 100 day commercial scale
Underground Coal Gasification (UCG) trial at Bloodwood Creek in the Surat Basin and is pleased
to announce that all requisite performance benchmarks are being met. The trial at Bloodwood
Creek is attracting national and international attention with business and government delegations
representing interest from India, Japan and Europe visiting the site within the past two weeks.
“CNX is in the final stages of an air trial and this has confirmed that the site can produce syngas
suitable for power generation. The next stage will move onto a steam trial and, after which, a
combination of oxygen and steam will be used to produce a hydrogen-rich syngas suitable for use
as a high value chemical feedstock. The transition to oxygen and steam is expected to occur as
early as next week.”
The A$20 million UCG syngas trial, which is being undertaken at Bloodwood Creek, near Dalby in
the Surat Basin, is designed to demonstrate the sustainability and consistency of its commercial
scale UCG syngas production before moving to development of one or more potential commercial
scale production options.
The trial is being undertaken on granted MDL374 and is not dependent on any decision by the
Queensland Government in relation to the issue of overlapping tenements. “There has been a
great deal of discussion in the press recently, initiated by some aggressive lobbying by
international giant British Gas, that UCG will be locked out of the Queensland market in order to
accede to demands by CSG players for so-called certainty.” said Mr Andrew Dash, Chief
Operating Officer at CNX.
In recent weeks, the Queensland Government has reiterated its stance that it does not plan to
“pick winners” in regards to the Coal Seam Gas (CSG) and UCG industries. Mines and Energy
Minister Geoff Wilson has been quoted as saying: “We want to develop a policy position that is in
the best interests of all stakeholders.”
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Carbon Energy’s intention, once the current UCG trial is successfully completed is to pursue the
feasibility of constructing, in partnership with existing business partners, a $1 billion ammonia
plant and a separate $1 - 2 billion manufacturing facility near the Surat Basin site. These
developments would be in addition to the LNG plans as proposed by the major gas companies.
“The Queensland Government is very aware of the significant potential these developments bring
to communities in rural Queensland and the importance of UCG in making these projects happen”
said Mr Dash.
“Our focus to date has been on ensuring that Queensland business and consumers are in a
position to take advantage of the lower priced more environmentally friendly energy products that
our technology can offer. However, as an organisation, we also have a clear national and
international commercialisation strategy that we will continue to pursue and execute.”