Brisbane-based Carbon Energy Limited  has announced that it has achieved electricity generation using syngas produced through its unique process of Underground Coal Gasification (UCG).

 

The breakthrough, which the company claims as an Australian first, was accomplished at the UCG syngas power plant at Bloodwood Creek in Queensland.

 

Carbon Energy Managing Director Andrew Dash said the achievement was a major step forward as the company moves closer to its first revenue milestone – connection to Ergon Energy’s local electricity grid, expected in October this year.

 

“The facility confirms Carbon Energy as a world leader in UCG technology development and expertise that delivers lower emissions energy from coal,” he said.

 

Mr Dash said the achievement brought cleaner, low-cost energy closer to commercial reality and builds on the10-year UCG technology research previously conducted in conjunction with the CSIRO.

 

“The generation of electricity from syngas further demonstrates the value of UCG in delivering a viable method of power generation, which is more environmentally friendly than traditional coal-fired power plants,” he said.

 

“Importantly, as demand for low-cost, cleaner energy continues to grow in Australia and around the world, our capabilities to produce base-load electricity from otherwise stranded coal resources will be valued more significantly by the market.”

 

Over the past weeks, Carbon Energy has been focused on successfully testing its gas engines under load. Electricity is currently being produced at the maximum rate allowable under current approvals, with up to of 1 MW of electricity being generated and transmitted into a load bank, located at site. This replicates continuous supply of electricity into the grid and confirms the use of syngas for sustainable electricity generation.

 

Testing of each of the three engines in turn will continue over the coming weeks ready for connection to Ergon Energy’s local area network in October.

 

Work also continues to progress with the Queensland Department of Environment and Resource Management (DERM) on amendments to the Company’s existing environmental approvals to ramp-up production to 5MW. These approvals are being progressed in parallel to the connection of the power station to the local grid.