separable businesses

It is increasingly clear to me that the low risk, syngas producer model is the most likely succeed wih any scale in commercialising UCG.

It is simply not necessary to take on the high risks associated with in-house development of specialist plant like GTL to achieve great returns for investors ... it is not your core business or expertise ... and execution risks are real.

I mentioned yesterday that imo a refiner or gas producer cornerstone investor is needed to really propel the CXY sp. I can now see I should have said cornerstone investorS and I believe they can co-exist. Cornerstone partners is perhaps a better way to view the relationship.

When a project with the modest physical footprint of Wandoan has a JORC resource of >6000 PJ and expanding, you can do just about anything if you are determined imo. When you think of the potential resource of the Victorian project the mind boggles.

You can have your long life powerstation, your long life diesel refinery and your long life methanation plant to supply gas to supplement CSM into Gladstone for LNG, and more ... just don't try do it yourself ... bring in experts who can co-exist once energy security is guaranteed by the syngas producer.

When you have the rights to COK's coal suited to UCG elsewhere in the Surat basin there isn't a lot in the power, diesel, methane, fertiliser and pharmaceuticals industries that your syngas producer model couldn't support.

What an employment boost to rural Qld (or rural areas anywhere, including developing nations) and what a boost for decentralisation and lifestyle away from big cities!

Cougar is initialising its UCG operations with a powergen project and then intends to replicate that with similar projects in other Australian and global locations ... the powergen model is one of "baseload".

If methanation of UCG syngas can produce a "manufacured" CSM to compete with conventional CSM, then supplying into the pipelines heading to Gladstone could in relative terms be considered "peaking" supply imo.

It takes 6-12 months or more to dewater coal seams to allow CSM to be extracted. Didn't it take less than a day for that flare to roar at Kingaroy? It would obviously take longer to develop commercial flows, but I see potential for CXY to be contracted to supply a portion of methane into Gladstone simply for the energy security that would offer.

Cheers
Dex