cranking up the engines

During my visit to the site at Bloodwood Creek at the beginning of May, I had the opportunity to watch the engineers working on the engines and saw the progress being made. This is a very exciting time for CNX, not only because they will soon be pumping power into the grid and earning some revenue, but also because of the debate about a tax on CO2 which at this point of time seems to have completely missed the existence of UCG as part of the equation.

Neither the government, the opposition nor the power generation industry appear to have factored in the impact that this technology will have once proven. UCG is cheaper than coal mining because the energy required to dig up and transport the coal, consumes a significant portion of the energy that the coal provides. For UCG, this constitutes a massive economic advantage.

Together with the vast reduction in CO2 emissions compared to mining and burning coal in power stations, these advantages will make UCG a game changer. And when you bring the CO2 tax into the equation, UCG looks to become the energy growth industry of the 21st century. UCG holds the key to reducing Australia's emissions beyond the 5% target.

Since CNX owns an important portfolio of IP for this technology, the world is about to become this company's oyster.