Hello HM,I believe CCS is a huge potential winner for the CAT on...

Hello HM,

I believe CCS is a huge potential winner for the CAT on top of this exciting Victorian project. You allude to this injection back into the coal which sounds very interesting have you any more on this HM?

Ignite is playing around with a number of technologies to handle the carbon which is easily separated from the gas produced by the UCG process. Carbon dioxide is a growth stimulant and can be used to grow algae for instance. It is just a matter (not a small matter) to get the business model right and the economics to grow a substantial business on the side which will value add for the JV partners.

Obviously the Vic Gov't can play a huge role in this and so can the Federal Gov't but only after the R&D has yielded the right model etc. But this brings me to the other side of the Vic deal which comes before the CCS.

The filthy outdated uneconomic Vic power system is in trouble and electricity prices are set to rise substantially. Has anybody else looked at the Loy Yang balance sheet and the syndicated loans that are not being paid down significantly at these prices. So the problem is two fold and hence the urgency of a partial solution like UCG which can be introduced on a modular basis.

In summary
The banks have got to be paid so electricity prices have to go up. This is positive for CXY economics.
The current infrastructure has to stay in place and gradually be replaced due to this debt.
Vic is chronically short of power and the Vic JV can quickly, yet incrementally deliver this additional power without replacing the current infrastructure.
This is a cleaner (by a whopping 40%)long term commercial scale solution likely to be in favor with additional proof on the table at Kingaroy.
Another bonus comes from CCS down the track first from carbon credits and then possibly as a value add business in its own right.

Thank you HM this is excellent research.
CW