productivity commission says..., page-25

Lory,

Maybe we will get some confirmation on GTL when the results of the FEED come out shortly, I believe sometime in July. If Linc order 3 or 4, 5000bbl units then this would show confidence the bugs were out of the system. If they order one as a prototype, then it would show some hesitation and the need to make some tweaks before full production.

Linc wants these 5000bbl GTL to come off a production line as such, from my experience with ships out of Korea, if you order three the same that is what you get, if after the first goes into service and problems with the design is found, bad luck, the next two are still being built the same, any changes will take place after delivery. Therefore before Linc orders a string of units, they will need to be very comfortable with the design before placing large orders.

As for the CO2 issue. If they have a problem disposing of CO2 from UCG, this not really related to GTL, as it will effect the operation whether the syn gas is used for power production, fertilizer or diesel. I do realize Linc is looking at sequestering the CO2 into the used coal cavities, which would give a short term problem of what to do with the CO2 until the operation is mature enough to handle to the CO2 in bulk. But there are many other places to sequester the gasses, eg the Surat basin has many depleted gas fields, it will not help to produce any more natural gas but it will get rid of the CO2. Deep saline aquifers could also be used, this is where most of the frac fluids are disposed of in the States.

In my eyes getting rid of the CO2 should not be a problem. I have no knowledge of the GTL plant but hopefully when the orders are placed the doubts will be lifted.

Question, They seem keen of firing up gasifier #5. Gasifier #4 should be putting out enough for the 10bbl per day demonstration plant. They drilled #5 to test their coil tubing unit, they modified #4 with the coil to "near commercial" production and they should be drill #6 in Wyoming shortly to the same design as #5 and even if # 5 was fired up, it would be too late to change the design on #6?