Carbon Energy Limited (ASX:CNX) In Final Stages Of Australia's First UCG Syngas Power Station At Bloodwood Creek QLD
Brisbane, Dec 23, 2009 AEST (ABN Newswire) - Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is in the final stages of constructing its 5 MW power station which will be powered by syngas produced from its underground coal gasification (UCG) facility at Bloodwood Creek in Queensland. This is an Australian first for fuelling this type of power station with syngas.
Carbon Energy`s Managing Director, Mr Andrew Dash said, "I am pleased to report that we are on track and expect to be operational, with electricity flowing into the local grid, in January 2010."
The construction of the main power station facility is almost complete and the gas engines have been successfully tested on air. Heavy rain in the local area over recent days has slowed progress and this, combined with the start of the Christmas/New Year holiday period, has pushed testing of the engines on gas into the first few days of the New Year. The completion date for the project remains scheduled for the end of January 2010, with electricity flowing into the local grid around the same time.
In July this year, Carbon Energy signed an off-take agreement with Ergon Energy, a Queensland Government owned electricity provider, for electricity produced at this facility. The contract is worth approximately $2 million per year and will represent the company's first revenue from its UCG activities.
Mr Dash noted that "The 5MW plant is an important first phase project for Carbon Energy for two reasons; we are achieving an Australian first with the fuelling of this type of power station from UCG Syngas; and secondly the electricity produced and sold into the grid will represent the company's first revenue from its UCG activities."
Carbon Energy is also well progressed with its Phase 2 project, the construction of a larger, 20 to 25 MW power plant, which will incorporate carbon capture and storage technology. Both these projects will position Carbon Energy at the forefront of the world-wide quest for low emission energy from coal ("Clean Coal").
About Carbon Energy Limited
Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is building a gas business, utilising its unique keyseam technology.
The Company is committed to providing industrial gas users with an affordable and secure source of high quality feedstock, as gas prices remain strong, through increased demand across our key markets.
Carbon Energy is the only company to complete a full-lifecycle, commercial scalable underground gasification trial. The Company's keyseam technology has successfully accomplished all the recommendations outlined by the Queensland government's Independent Scientific Panel (ISP) which included intense, independent environmental scrutiny.
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