PERTH (miningweekly.com) – ASX-listed Carbon Energy will move to a prefeasibility study (PFS) of its synthetic gas (syngas) reserve at Bloodwood Creek, in Queensland, after a conceptual study identified underground coal gasification (UCG) opportunities.
The conceptual study was the third phase in a process which had followed ten years of scientific development and research, said Carbon Energy, and was completed to advance the commercialisation of the syngas reserve, subject to the state government’s UCG policy, and to securing a joint venture partner.
The study identified and assessed the commercial viability of a suite of downstream products to determine the most attractive commercial option for the Bloodwood Creek project, and identified ammonia and substitute natural gas (SNG) production as the most attractive options to deliver maximum value to the company.
Carbon Energy noted that the existing syngas reserve was sufficient to support the production of around 2 200 t/d of ammonia or some 25 PJ of SNG a year, for a 25-year period.
The tenement area was also well placed for full commercialisation, with nearby infrastructure, including major power lines, the Roma–Brisbane gas pipeline, industrial-grade water supply, roads and rail; as well as skilled labour.
The company said on Friday that the site PFS would now more accurately assess the economics of ammonia and SNG production. Production of these products would also be dependent on clarification from the Queensland government on its UCG policy.