PERTH (miningweekly.com) – Underground coal gasification (UGC) company Liberty Resources has completed a scoping study for its Denison gas project, in Queensland, and was now looking for suitable joint-venture (JV) parties to develop the project.
The scoping study was based on 19 783 PJ of recoverable syngas, produced at a cost of $1,79/GJ, and based on this model, Liberty said that the project revenues could exceed A$59-billion.
Liberty noted that the scoping study was the first in a series of reports intended to give potential investors an indication of the scope and magnitude of the project.
The Denison project hosts some 52 km2 of Reids Dome coal seam, with an estimated average thickness of 20 m. Using a typical specific gravity of 1,4 yielded potential coal of 1,46-billion tons, which, at 60% volumetric efficiency and 91% thermo-dynamic recovery, equated to 0,87-billion tons.
“Liberty is now inviting suitable interested parties for JV with a view to developing large-scale projects. Offtake agreements and project finance discussions with potential partners and customers have started,” the company said in a statement.
In February last year, the Queensland government enacted its Underground Coal Gasification policy, which stated that in order to undertake a UGC project or pilot project, the mineral development licence holder required an exploration permit for coal (EPC) previously designated at in-situ gasification products.
Currently, only three companies have been granted pilot projects, with the Queensland government stating that during the pilot phases of these three projects, no further UCG pilot project was allowed, unless approved by the Minister of Mines and Energy.
“At this time, Liberty does not have permission to undertake a pilot project on any of its tenements, although it intends to have future discussions with the Queensland government concerning potential pilot projects, which have a strong ability to further demonstrate the efficacy of UCG technology,” the company added.