faqs...

Howdy All

I thought I would start a new thread to address some of the FAQs postulated by those that may be slightly ignorant, feel free to add your own:

Q: How will Exergen ever dig a vertical 1 km hole?

A: There are many examples of ventilation shafts that have been dug to deeper depths in Vic. However, mining equipment in the USA have machines that can nowadays drill a 1m dia hole to depths of 2 km's plus and the technology is improving all the time.


Q: There isn't enough heat to create the temperature at 1 km depth to produce CHTD BCE, even geo rocks in LV don't get hot enough?

A: Firstly, CHTD does not require geo rocks – that is a complete fabrication. We know that 2% of the energy in the BC is used to transfer the BC to BCE. Therefore the heat required is created in a chemical reaction under pressure - that pressure is created at depth.

Q: Has CHTD even been proven to work?

A: Yes. The pilot plant at Beaconsfield was built to simulate a commercial plant at similar depth, but obviously on a smaller scale and with a smaller sample (with BM coal). The commercial demonstration will be a larger version with the same processes ie. BC, water, air, gravity and pressure.

Q: The slurry is pumped down to 1 km, how does it get back up?

A: The slurry is gravity fed into the autoclave. There has been documentation to suggest the flow will be aided with pumping mechanisms, but once the system is flowing, it will be a continual process. This is optimal when compared to others systems that are batch operated.


Q: What will Exergen do with all the toxic sludge that is left over from the CHTD process?

A: Firstly - there is no toxic sludge. Water is combined with BC into a slurry mix which is fed into the autoclave and decarboxylation process occurs at depth, thus expelling the water inherent in the BC. There will be micron size pieces of BCE that will be in the slurry once returned to the surface. These will be filtered, however, as BC is currently used as a fertiliser, a use for the “particle” water could be for agriculture as it is now. The potable water from the process can be reused in the initial slurry mixing.


Q: Will Exergen forget BM once they get their own S7 LV BC allocation?

A: No. As per the AFC Ambrian $100 million capital raising for Exergen, it clearly outlines Exergen’s intent to develop BM BCE export project. Additionally, Exergen have taken over as Project Manager and have an offtake agreement with shareholder Tata. The only feasible way forward for Exergen to supply Tata the 20 mT BCE pa announced is via BM where infrastructure is in place to rail to the port of Geelong.


Q: Will BM project ever get off the ground?

A: Highly likely. Let’s consider that:

- The tenement has been allocated “extractive” purposes only ie mining, by Moorabool Shire Council.

- The scoping study was completed by Thiess and Sedgman. They do not put their name to a scoping study with NPV values unless they know they can deliver on it.

- Exergen have indicated via AFC Ambrian flyer their intention to commercialise BM after proving CHTD demo plant in LV.

- MNM would not have signed over 800 million tonnes of resource (for which $500K was paid by Exergen) unless there was some certainty that their 800 million tonnes would be utilised and developed.

- BM has an unemployment rate of 12% - creating jobs in the area would be well received on the whole.

- Existing infrastructure and a JV partner Exergen with shareholder Tata wanting the BCE and, more importantly, a guaranteed supply.


Q: Isn’t the BM coal too high in Sulphur – no one will want it?

A: True, the S levels are not ideal. However, the BC can be blended with low S coal to reduce overall S, the coal could have a reduced pricing to compensate for the higher S (the calorific value is more important with ash, S, etc. a price consideration after CV), the Exergen process does leech out a percentage of the S in the CHTD process, modern day power plants have scrubber techs that also reduce S levels and adding calcium, gypsum or similar in the burning process also reduces S.

Cheers K