ann out cnx has commenced production, page-9

8 October 2008 ASX Announcement ASX: CNX
Carbon Energy commences commercial trial of
Underground Coal Gasification plant
Carbon Energy Limited (ASX:CNX) today announced that it has successfully
commenced syngas production at the Bloodwood Creek Underground Coal Gasification
(UCG) site located in the Surat Basin, south east Queensland.
Carbon Energy’s Chief Operating Officer Andrew Dash said it was a landmark day for
Carbon Energy: “Bloodwood Creek is first project of its type in the world to demonstrate,
on a commercial scale, our UCG process based on oxygen injection and our intellectual
property developed in conjunction with the CSIRO over the past 10 years.”
A one petajoule (PJ) per annum module, including all ancillary site works and
associated infrastructure, has been constructed on time and within budget by the
company’s dedicated team, he said
The process will be ramped up to full design capacity production of UCG syngas over
the next few weeks after which a 100-day trial period will commence. The objectives of
this trial are to confirm Carbon Energy’s world leading UCG technology is capable of
producing syngas in a sustainable and consistent quality to meet commercial
requirements for gas feedstock suitable for production of a significant number of
petrochemical reliant industries.
Results from the trial will also be used as part of feasibility studies previously
announced with Incitec Pivot Limited to confirm the suitability of Carbon Energy’s UCG
syngas for ammonia production and also for methanol production following on from the
Letter of Intent signed with LyondellBasell in September.
Carbon Energy anticipates that the successful completion of this UCG syngas trial will
be a significant milestone in establishing Carbon Energy’s UCG syngas as basis for the
future development of significant commercial scale projects requiring an economical
source of gas/petrochemical feedstock.
Representative photographs of site works are attached, in addition to a related Media
Release.
Technology Transfer Building, Queensland Centre for Advanced Technology. 1 Technology Court (off Bainbridge Drive)
Pullenvale QLD 4069 Tel: 61 7 3327 4442 Fax: 61 7 3327 4446
For and on behalf of the Board
Andrew Dash
Chief Operating Officer
For Further information please contact:
Investors Media
Andrew Dash, Chief Operating Officer Greg Flynn
Carbon Energy Channel Financial Communication
Ph: 07 3327 4300 Ph: 02 9221 0008
M: 0419 025 507 M: 0400 225 115
COMPANY PROFILE
Carbon Energy’s purpose is to produce clean energy and chemicals feedstock from
Underground Coal Gasification (UCG) syngas.
Carbon Energy’s unique approach to UCG and syngas production produces a low cost
option for capturing CO2, making it a leader in clean coal technology.
Carbon Energy’s ambition is for syngas to become the preferred feedstock for
producing clean coal power stations, an alternative to oil-based fuel, agribusiness
products (fertilisers & explosives), polyolefin products (such as plastics) and allowing for
economic carbon capture.
Carbon Energy’s technological advantage comes from its association with CSIRO
including world class geotechnical, hydrological and gasification modelling capabilities.
Located at the hub of the Surat Basin’s energy infrastructure, Carbon Energy’s energy
resources are perfectly positioned to provide the basis for future energy, industrial and
agricultural chemicals, and liquid fuels for export and to the growing local industrial hub.
Page 2





Brisbane Office:
Carbon Energy Limited
ABN 56 057 552 137
Registered Office:
Unit A2, 118 Railway Parade
West Perth WA 6005 Australia
PO Box 1785
West Perth WA 6872
Tel: +61 (08) 9321 5000
Fax: +61 (08) 9321 7177
www.carbonenergy.com.au
MEDIA RELEASE 8 October 2008
Carbon Energy successfully commences Underground Coal
Gasification commercial-scale trial
Carbon Energy Limited (ASX:CNX) today commenced syngas production at its Bloodwood
Creek Underground Coal Gasification (UCG) site in the Surat Basin, south east Queensland.
Carbon Energy’s Chief Operating Officer Andrew Dash said the project is the first of its type in
the world to demonstrate, on a commercial scale, the company’s UCG oxygen injection based
process. The process has been developed in conjunction with the CSIRO over the past 10
years.
Carbon Energy’s unique approach to UCG and syngas production produces a low cost option
for capturing CO2, making the company a leader in clean coal technology.
“This is a landmark day for Carbon Energy,” Mr Dash said. “With construction complete at
Bloodwood Creek, we will gradually ramp up to full capacity production over the next few weeks,
after which a 100 day trial period will commence.
“The trial will demonstrate our world-leading UCG technology is capable of producing syngas in
a sustainable and consistent quality to meet commercial requirements for gas feedstock suitable
for petrochemical reliant industries.”
Results from the A$20 million trial will be used as part of feasibility studies with Incitec Pivot
Limited to confirm the suitability of Carbon Energy’s UCG syngas for ammonia production. The
trial will be also used to study the syngas’ suitability for methanol production as outlined in the
company’s recently signed Letter of Intent with LyondellBasell.
“The successful completion of this trial will be a significant milestone in establishing the
company’s UCG syngas as basis for the future development of significant commercial scale
projects requiring an economical source of gas/petrochemical feedstock,” Mr Dash said.
He added that Carbon Energy’s one petajoule (one million gigajoules) per annum module
including all ancillary site works and associated infrastructure has been constructed on time and
within budget.
Technology Transfer Building, Queensland Centre for Advanced Technology. 1 Technology Court (off Bainbridge Drive)
Pullenvale QLD 4069 Tel: 61 7 3327 4442 Fax: 61 7 3327 4446
For further information, please contact:
Greg Flynn
Channel Financial Communication
Ph: 02 9221 0008
M: 0400 225 115
COMPANY PROFILE
Carbon Energy’s purpose is to produce clean energy and chemicals feedstock from
Underground Coal Gasification (UCG) syngas.
Carbon Energy’s ambition is for syngas to become the preferred feedstock for producing clean
coal power stations, an alternative to oil-based fuel, agribusiness products (fertilisers &
explosives), polyolefin products (such as plastics) and allowing for economic carbon capture.
Carbon Energy’s technological advantage comes from its association with CSIRO including
world-class geotechnical, hydrological and gasification modelling capabilities.
Located at the hub of the Surat Basin’s energy infrastructure, Carbon Energy’s energy
resources are perfectly positioned to provide the basis for future energy, industrial and
agricultural chemicals, and liquid fuels for export and to the growing local industrial hub.
Page 2