As I understand it, Linc's UCG production is capable of feeding a 20K a day GTL plant. As I understand it the 20K barrel a day seems to be the max or sustainable amount of barrels that UCG is capable of. The UCG would come from many pre planned sites that cover a large area that their location is planned far in advance to maintain flow of syngas to feed the GTL plant. Linc's UCG production and expertise is far beyond what other competitors can produce currently. Linc still is the only company EVER to have created Deisel using UCG and GTL.
However, a 20K barrel per day GTL plant is very expensive and large and I understand that modulising more smaller GTL plants would be more efficient and cost effective and easier. Basically, take the current pilot plant in Chinchilla and increase the scale and expand it to 5K a day capability using same inputs and then like a cookie cutter, use that formula to scatter 5K a day GTL plants over a wide area.
Once a UCG GTL site is created that produces 5K barrels a day and the method becomes proven and the market understands it and accepts it, Linc shares will soar.
Strap in...
LNC Price at posting:
$3.10 Sentiment: Buy Disclosure: Held
