CARBON ENERGY GENERATES COMMERCIAL SCALEPRODUCTION VOLUMES OF...

CARBON ENERGY GENERATES COMMERCIAL SCALE
PRODUCTION VOLUMES OF UCG SYNGAS
Carbon Energy Limited (ASX:CNX) today generated the first commercial scale production
volumes of underground coal gasification (UCG) syngas from its UCG plant at Bloodwood
Creek, Queensland, and commenced a 100-day, A$20 million trial to demonstrate the
sustainability of its commercial scale UCG syngas production.
Carbon Energy’s Chief Operating Officer Andrew Dash said the achievement represented
another significant milestone in the company’s UCG syngas commercialisation program
developed in conjunction with the CSIRO.
Results from the trial will be used as part of feasibility studies to be undertaken with Incitec Pivot
Limited to confirm the suitability of Carbon Energy’s UCG syngas for ammonia production. The
trial will be also used to study the syngas’ suitability for methanol production as outlined in the
company’s recently signed Letter of Intent with LyondellBasell.
“With gas being produced at commercial volumes we have successfully demonstrated Carbon
Energy’s ability to realise the value of its substantial coal tenements,” Mr Dash said. “During the
100 day trial, Carbon Energy will optimise quantity and quality, and minimise the cost of gas
produced through controlled variation in the feed of air, oxygen, and steam.”
Commercial scale production was achieved by switching product gas flow from the vertical
ignition well to the horizontal in-seam product well and ramping up the airflow to achieve
maximum gasification rates possible with air. This air blown gasification test represents the
optimum gas for production of low cost electricity.
The next step in Carbon Energy’s trial period is to use a mixture of oxygen and steam in the
injection well which will demonstrate the maximum energy production rate of the panel design
and the optimum syngas feedstock for ammonia, methanol and chemicals manufacture.
It is the use of oxygen and steam in the gasification process together with Carbon Energy’s
unique panel design developed by the CSIRO that differentiates the company from other UCG
projects currently being undertaken in Australia. It is this process and the resultant ability to
economically remove CO2 from the UCG Syngas that puts Carbon Energy in the lead as a
provider of clean energy and chemicals from coal.