cat on a hot tin roof ...

I was googling a bit on the weekend and came across an old Eskom press release.

I ruminated on the lack of recent information on the Majuba project and how some HC posters tend to use it as a bit of a grenade to lob into the CXY threads from time to time.

So I emailed Eskom Sunday Sydney time and got a reply soon after work would have started in South Africa this morning.

There as an attachment was a copy of a Jan 2010 UCG Briefing Document preceded by a link to the very serious looking Eskom Email Legal Notice (gulp) ... basically what had been emailed to me was for my own use and not for ciculation.

I emailed them again tonight and got a reply giving permission to paraphrase ... so here goes ... carefuly!

# Eskom is soon to have a UCG website with public access ... to me, that suggests engagement and commitment to UCG in South Africa.

# There have been some delays with the Majuba project, but these have not been associated with the Ergo technology.

# Majuba has been producing syngas continuously since 20/1/07 ... for flaring ... extensive environmental monitoring over the period of flaring has been without incident ... monitoring will be expanded as the field grows.

# I read that Eskom have full confidence in UCG technology and are ready to increase syngas production for co-firing. Ergo's input has been of great benefit and Eskom are committed to continue working with them.

# Eskom appreciate that UCG technology requires a methodical implementation strategy and extensive investment in skills to plan and execute ... this has been Cougar's Len Walker's mantra to anyone listening ... and another justification of the "kiss" principle imo.

# One of many UCG advantages identified by Eskom took my fancy ... it is obvious with hindsight ... power can be produced during peak demand periods, and chemicals during off-peak.

# The next commercialisation step is to commence demonstration of UCG syngas firing in an open cycle gas turbine ... watch this space it seems.

# Another standout for me was Eskom's view (to date) that UCG technical risk is low as building blocks of this generation technology have been proven elsewhere in
the world ... integration is required to combine the components and adaptation is required to suit the geological conditions and coal.

# The briefing (and the Eskom website) confirm that Eskom is a huge enterprise and that corporate governance is a strong culture ... staged UCG development is seen to give an exit strategy for UCG development (if things dont work out) ... no unreasonable risks are being taken.

All in all, Eskom's approach to UCG commercialisation is solid imo ... they appear to be quietly getting on with it ... and have possibly progressed further than given credit for imo ... wrt to chemicals, Sassol is a successful South African based, global coal to liquids producer ... Eskom has every opportunity to succeed imo.

Dex