npv for 40mw gt power plant, page-5

DrP

Its good to get some discussion going here.

My view is that if ucg can prove profitable in something as small as a 40MW power generating project (17% IRR) and very profitable in an upgrade to 400MW (47% IRR) then ...

a) Small, distributed, syngas fuelled power generating projects located in areas having a higher gas pricing structure (eg, WA here in Australia for starters) should prove more profitable, particularly if the other natural gas supplies have to compete with syngas by absorbing significant pipeline transport charges.

b) The income stream from syngas supply for 2 or 3 major generating projects (say 400MW to >1000MW range) almost anywhere in the world could see market cap >A$1bill imo.

c) When the compact, long term nature of syngas generating projects becomes common knowledge, imo such projects may even get re-rated on energy security grounds for many developing countries.

d) Commercial success with ucg for just the 40MW Kingaroy project will almost certainly create interest and funding opportunities for the more ambitious and technically challenging syngas to diesel and syngas to fertiliser applications.

Cheers
Dex