Carbon Energy (ASX:CNX) Australia's first UCG syngas Power Station - Commissioning Update
Brisbane, Jan 25, 2010 AEST (ABN Newswire) - Carbon Energy (
ASX:CNX) advises that final stages of the construction and commissioning of its 5 MW power station is expected to be delayed a number of weeks.
Due to delays in the delivery of key plant items required for commissioning Carbon Energy's construction partner Pangea Partners has requested and has been granted an extension for the completion of the power station of up to 6 weeks.
Carbon Energy will be using this time to undertake remediation and expansion of the gas injection well capacity for the existing UCG panel, ready for commissioning the gas engines, once construction is finalised.
In addition, planning and procurement for the construction of a second UCG panel is well advanced in accordance with Carbon Energy's development plans. Horizontal drilling is expected to commence in March. The 2nd panel will provide additional gas production capability and some future operational redundancy.
As previously advised, in July last year, Carbon Energy signed an off-take agreement with Ergon Energy, a Queensland Government owned electricity provider, for electricity produced at this facility. Whilst the first revenue from the project will be slightly delayed there is no financial penalty to Carbon Energy associated with the date change.
Further updates on the construction progress will be provided as the project proceeds.
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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