An ambitious joint venture to exploit untapped coal seams under...

An ambitious joint venture to exploit untapped coal seams under the Firth of Forth has taken a significant step forward.

Fife-based Thornton New Energy Limited and Australian company Riverside Energy Ltd have joined forces in a multi-million pound bid to explore and develop huge underground "clean" coal reserves off the Fife coast ? a project which could significantly cut the country's carbon emissions and bring huge investment and jobs to the region.

Thornton New Energy was awarded the UK's first underground coal gasification (UCG) licence last year, which will allow it to turn coal deposits that either cannot be mined or where mining is not commercially viable into a synthetic gas which can then be used as a power generation feedstock.

With a potential coal field area of up to 95 square miles identified beneath the Forth, the project has now gathered pace after both firms unveiled their new joint project offices at Methil Business Park.

The companies believe the base is needed in the Methil Hydrogen Office to ensure they can be as close to developments under the estuary as possible.

Councillor Ross Vettraino, vice-chairman of Fife's environment, enterprise and transportation committee, welcomed Riverside Energy chairman Dr John Bishop to Fife to mark the official opening of the offices.

Mr Vettraino said, "This is an exciting venture which has the potential to contribute greatly to reducing Scotland's carbon footprint by producing low-cost, long-term, clean energy for the country.

"It will help put Fife at the heart of renewable energy and low carbon development in Scotland."

Following exploration and testing, the joint venture will use clean UCG technology to make the most of the vast resources in the Firth of Forth.

The technique sees coal turned underground into a substance called syngas, a synthetic gas made of hydrogen, methane, carbon monoxide and carbon dioxide, which can be used in power generation.

Interest in the benefits of UCG is growing, as it offers lower emissions as no coal is brought to the surface and the gas can be processed to remove its CO2 content.

It can be used for heating, power generation, hydrogen production or the manufacture of key liquid fuels such as diesel or methanol.

Dr Bishop chairman of Riverside Energy Limited, reckons underground coal gasification offers a "long-term sustainable, cheap, secure and environmentally benign" energy supply which could fuel the UK for more than 100 years.

He said, "We are pleased to have Thornton New Energy as our partner with their local expertise and I would like to stress how important and gratifying it is to have the whole-hearted support of local government and the community."