Carbon Energy Pty Ltd, a joint venture between West Perth-based Metex Resources Ltd and the CSIRO, will investigate underground coal gasification prospects in India after signing a memorandum of understanding with the nation's second largest coal producer
Carbon Energy Pty Ltd, a joint venture between West Perth-based Metex Resources Ltd and the CSIRO, will investigate underground coal gasification prospects in India after signing a memorandum of understanding with the nation's second largest coal producer.
The full text of a company announcement is pasted below
Carbon Energy Pty Ltd, a company jointly owned by listed resource company Metex Resources Ltd and CSIRO, has added further momentum to the international development of its innovative process for the gasification of underground coal deposits for power generation through a significant new development venture in India in collaboration with India's second largest coal producer.
Carbon Energy has entered into a Memorandum of Understanding with Singareni Collieries Company Ltd to cooperate in the investigation for joint development of underground coal gasification in Singareni coal areas within the Godavari Valley coalfields. Singareni Collieries Co has mines in Andhra Pradesh State, and is jointly owned by the State and the Indian Governments
The MOU was signed by Carbon Energy's executive general manager, Cliff Mallett, and S. Narsing Rao, the chairman and managing director of Singareni Collieries, following the Asia Pacific partnership for Clean Development and Climate (AP6) Coal Mining Taskforce workshop on underground coal gasification in Kolkata 12-15th November.
In opening the Underground Coal Gasification workshop, the Indian Minister (Coal) Shri Shibu Soren said: "I understand that coal deposits which cannot be mined by conventional methods, can be utilised to produce energy in the form of synthetic fuels at a price competitive with existing energy resources, by underground coal gasification technology which has come into focus in recent times. This technology, when successfully implemented, will not only provide clean energy but will also help in reducing the gas and oil import bill of the country".
The Australian Government was a sponsor of the workshop as part of the AP6 projects announced by the Prime Minister John Howard on November 1st, which included $250,000 in principle support to Carbon Energy for accelerating the implementation of Australian underground coal gasification technology in India.
Carbon Energy and Singareni will evaluate UCG prospects throughout the Godavari Valley, and have commenced investigating coal reserves down dip of existing open cut and underground mines in the Manuguru area, 250km E of Hyderabad. A deep underground coal resource has been identified in this region over a 30 km2 area at 500m drill hole spacing. Seams from 5 - 15m occur in a relatively simple structural setting between 300m and 600m depth and are open at depth. The potential for conventional mining is limited by high temperature mineral waters originating in the underlying Archean basement. Local energy markets for UCG syngas include power stations, ceramic, cement and chemical works.
Underground coal gasification has been used in large-scale operations in countries of the former Soviet Union for over 40 years, and numerous exponential trials have been performed in former Soviet states, the USA, Western Europe and a number of other countries.
The technology is simple to construct and operate, and involves drilling of a range of vertical wells, bores and gasification layouts to gasify coal deposits in-situ to produce a syngas suitable for low-cost power generation. The resultant gases are harnessed at surface for conversion into suitable feedstock for power generation, or for conversion into ultra-clean liquid fuels and chemicals.
Carbon Energy Pty Ltd has acquired three suitable coal leases in the Surat Basin in South East Queensland, covering an area of 2,375km2 which will be the focus of a proposed first stage of activity in identifying and developing a suitable underground coal deposit for demonstration and commercial development of the UCG process. These leases are located in close proximity to existing infrastructure and potential markets, being traversed by power transmission connectors, gas and oil pipelines, and power stations.
The initial trials will target coal seams at greater than 400 metres depth, drawing on the extensive depth of expertise developed by the CSIRO in developing and modeling controls of the UCG technology over the past 10 years through its Division of Exploration and Mining based in Queensland.
The alternative energy sector is currently experiencing high levels of market interest because of soaring oil prices and strong levels of demand. UCG is an innovative process which is suitable for deep underground coal deposits where current underground mining methods and inefficient extraction techniques would make mining uneconomic. Electricity can be generated using the resultant gas at a comparable cost to conventional coal-fired power, but with a 40-50% reduction in greenhouse emissions.
