Australia's Cougar Energy Uses UCG Technology to Ignite Kunioon Coal Seam

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Researched by Industrial Info Resources (Sugar Land, Texas)--Cougar Energy Limited (ASX:CXY) (Melbourne, Australia), an Australian developer of underground coal gasification (UCG) projects, successfully ignited the Kunioon coal seam at its Kingaroy plant in central Queensland and initiated the gasification process. Syngas production has begun, and the onsite gas-processing unit is in operation. The main flare has been ignited as well.

The coal-seam ignition was achieved using the air injection UCG technology that was developed and is licensed by Ergo Exergy Technologies, Incorporated (Montreal, Quebec). Dr. Michael Blinderman is leading the Ergo Exergy team, which will gradually increase the gasification process over the next few weeks. This will be followed by a series of trial runs to test the feasibility of running both surface and underground gasification operations under different conditions. Detailed data collected over at least six months will be included in the ongoing pre-feasibility study being conducted by Cougar Energy. The data will be used to populate the bank feasibility study that soon will follow. The bank feasibility study will be required to raise the necessary funds for the project.

The UCG process is a gasification process that is used in unexploited coal seams; it involves the use of injection and production wells that are drilled from the surface. This enables the in situ conversion of coal into product gas. Ergo Exergy's patented Exergy UCG™ Technology has a higher exergy efficiency in comparison to the conventional UCG technologies available, leading to lower exergy dissipation into the environment.

Like other UCG processes, the Exergy UCG process involves the reaction of an oxidant with coal embedded in an underground coal seam. A part of the released sensible heat is then utilized in coal drying, in the endothermic reactions that reduce the combustion products, and in pyrolysis. The composition of the resultant Exergy UCG gas is dependent on the process parameters and the geology of the coal. A variety of oxidants, such as air and oxygen-rich blends of gases, can be used to produce the Exergy UCG gas.

The Exergy UCG technology includes various ways to link wells, the ability to inject a variety of oxidants, and several designs of underground gasifiers. The technology can be applied to coal found under a large range of geological conditions. It can be customized to fit the unique geological conditions of the coal seam being explored. Normally, the technology is applied to coal seams that are at great depths in water-saturated conditions, but it also can be used to gasify coal that is above the water table.

According to Dr. Len Walker, the managing director and chief executive officer of Cougar Energy, the ignition of the coal seam is a significant milestone as the company works toward setting up a commercial-scale UCG production facility and a power generation unit at Kingaroy. The project has progressed as per schedule and on budget.

The Kingaroy Power Project is the flagship development of Cougar Energy, and it represents the first time that the commercial usage of UCG technology is being explored in Australia. The final design of the 400-megawatt (MW) power plant will be decided by the performance of the gas processing plant, as well as the composition and variability of the gas obtained. The power plant is expected to generate sufficient power for 400,000 households over at least three decades.

Cougar Energy is currently exploring the feasibility of setting up a small-scale plant that will utilize the gas from the project during the pre-production phase and generate enough power to operate the site. The power project will be developed in two stages, and Cougar Energy is analyzing the economic returns of different power generation scenarios for the first 200 MW of the power project and the possibility of generating an income earlier that previously planned. The construction contract is scheduled to be awarded during the current fiscal year, and construction is expected to begin soon after that.

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