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Carbon Energy Signs Technology Licensing MOU for a
Commercial Scale UCG Project in Argentina

• Carbon Energy becomes the underground coal gasification technology partner of Delmo, an Australian diversified investment group, for a commercial scale UCG project in Argentina, South America.

• US$10 million in technology licence fees are payable of which 75% will be payable on completion of the Bankable Feasibility Study and 25% on successful ignition of the initial Process Characterisation Panel, plus additional revenue from technology service fees and an ongoing production royalty.

• It is proposed that the commercial scale project will initially generate 300MW of electricity with further expansions planned.

• Project site consists of coal resource rights covering over 600,000 hectares in the Claromeco Coal Basin in Argentina.

• It is intended that the project will be fully funded by Argentine project partners.