renewable energy may cost less than coal power, page-3

more and more people jump on the UCG bandwagon every day. These two are oilers too :)

http://nbbusinessjournal.canadaeast.com/front/article/716895

WINNIPEG - Nordic Oil & Gas Ltd (TSXV:NOG) and partner Western Warner Oils Ltd. said Thursday they plan to apply to the province of Alberta for permits to build an underground coal gasification project at a Drumheller, Alta. property.

The companies are making preparations to submit an application for what would be the second such UCG project in Canada, Nordic chairman and CEO Donald Benson said in a statement.

Coal gasification involves injecting oxygen and saline water into the deeply buried coal to turn it into synthesis gas.

"The basic UCG process involves drilling two wells into the coal - one for injection of the oxidants (water/air or water/oxygen mixtures), and another some distance away to bring the product gas to the surface," Benson said.

"The technique offers an alternative to conventional coal mining methods."

In March, the Alberta government announced it will provide $8.83 million to Swan Hills Synfuels of Calgary towards a $30-million project near Swan Hills in north-central Alberta.

The Alberta government says that will be the deepest underground coal gasification conducted in the world - more than 1,000 metres below the surface.

It's hoped the project will eventually lead to using the coal seams to capture and store carbon dioxide, which is pumped into the ground to help push oil out of aging reserves.

The gas can be used as fuel for clean power generation, further processed into gas for home heating, or for other products like hydrogen, methanol or transportation fuels.

Underground coal gasification does not use fresh water in its operation and is significantly different than other processes, such as those used in oil sands development. It's used at depths where conventional coal mining is not economic or currently possible.