Posts Tagged ‘Carbon Energy’

ASX Company News: Carbon Energy Exports First Electricity From UCG Plant

Monday, February 13th, 2012

Carbon Energy Limited (CNX) has become the first Australian company to export power generated by syngas into a commercial electricity grid from its underground coal gasification (UCG) plant at Bloodwood Creek, near Dalby, Queensland.

The Company announced today that it has successfully  conducted testing for the export of electricity to Ergon Energy Corporation Ltd’s local electricity grid, within the current allowable limit of 1.5 MW.

Carbon Energy has pioneered the process of generating electricity using synthetic gas – also known as syngas – produced through its proprietary UCG technology at its Bloodwood Creek site. It has now become the first Australian company to complete a commercial agreement for the sale of energy produced by UCG syngas in Australia.

Carbon Energy Managing Director Andrew Dash said the achievement positioned the Company as one of the leading innovators of UCG in the world.  “The Company continues to take significant strides as a world leader in UCG technology development and expertise for delivering lower emissions energy from coal,’’ Mr Dash said.

“Today represents a further step in the process that  has the capacity to deliver cheaper and greener energy to Queenslanders,’’ he said.  The energy produced at Bloodwood Creek will be plugged back into the grid to support local communities and can be sold at prices not linked to high-priced, global pricing.

The continued successful operation of UCG technology at Bloodwood Creek has now achieved 10 months of sustained syngas production, delivering consistent, high-quality gas, since its initiation in March 2011.

www.carbonenergy.com.au

http://www.traderdealer.com.au/fundamentals/cnx

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ASX Company News: Carbon Energy Acquires USA and UK Clean Coal Companies

Thursday, February 24th, 2011

Carbon Energy Limited (CNX) developer of Australia’s first commercial Underground Coal Gasification (UCG) fuelled power station has executed a Share Sale Agreement to acquire USA-based Clean Coal Inc. and UK-based Clean Coal Amasra Ltd. This transaction delivers projects in the United States of America and Turkey as developed by Clean Coal Ltd. The acquisition has the potential to increase Carbon Energy’s coal resources by almost three fold to in excess of 2 billion tonnes and underpins the Company’s plans to build an international portfolio of UCG projects.

Carbon Energy will acquire two companies holding rights to projects in Wyoming (USA), North Dakota/Montana (USA) and Amasra (Turkey). Consideration of US$10 million of shares (based on 60 day VWAP) will be issued within the Company’s 15% share issue capacity (ASX Listing Rule 7.1). Two further tranches of US$4.5 million of shares each (based on 30 day VWAP at time of milestone achievement) will be issued subject to meeting key development milestones including the delineation of JORC complaint coal resources in excess of 500Mt at two of the three locations.

Mr Dash commented, “This acquisition is consistent with our growth strategy and will establish the Company in our target markets of North America and Europe. In addition, the commercial partners we will have as a consequence of this acquisition are each major players in their respective markets. Their ability to bring considerable strategic benefits to this transaction will provide Carbon Energy with opportunities for early project success. We have been developing a suite of products from “syngas”, a mixture of hydrogen, methane and carbon monoxide produced in the UCG process. These downstream uses for syngas include low emission power generation, synthetic natural gas production and chemical manufacture, such as ammonia. We believe that each of these products will play an important role in the US and European markets.

Carbon Energy’s purpose is to produce cleaner energy and chemical feedstock from Underground Coal Gasification (UCG) syngas. Carbon Energy’s unique approach to UCG and syngas production increases the efficiency of capturing carbon dioxide, giving the Company a leading edge in clean coal technology. Carbon Energy’s technological advantage comes from its association with Australia’s premier research agency, CSIRO, including world-class geotechnical, hydrological and gasification modelling capabilities. Carbon Energy is building an international portfolio of coal assets suitable for UCG and accessible to high-value markets.

www.carbonenergy.com.au

http://www.traderdealer.com.au/Fundamentals/cnx

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ASX Company News: Carbon Energy To Develop Power Station For Arcadia Energy

Tuesday, September 7th, 2010

Carbon Energy (CNX) has executed a Power Station Development Agreement with Arcadia Energy Trading that, when completed, will result in the development of both a 25MW and a 300MW power station fuelled by syngas in Queensland.

Arcadia will enter into a long term Power Purchase Agreement (PPA) to purchase the electricity produced by Carbon Energy’s 25 MW power station at Bloodwood Creek, Arcadia will, upon Carbon Energy obtaining a Mining Lease for Bloodwood Creek, purchase the 25 MW power station from Carbon Energy and enter into a long term Gas Supply Agreement, and Carbon Energy and Arcadia will partner in the development of Carbon Energy’s 300 MW Power Station at the Company’s proposed Blue Gum Energy Park, located adjacent to the Bloodwood Creek coal resource. The Power Station Development Agreement provides a framework for Carbon Energy and Arcadia to progressively develop the Stage 2 – 25 MW power station and Stage 3 – 300 MW power  station based on UCG syngas from Carbon Energy’s Bloodwood Creek coal resource near Kogan in Queensland.

Carbon Energy Managing Director, Andrew Dash said that “This agreement is a significant development for the company as it represents a clear development path for our Stage 2 and 3 power generation projects. Additionally it presents the opportunity for Carbon Energy to work with an experienced and successful energy trading company which provides complementary market knowledge and financial capability, both of which will assist in the successful progression of Carbon Energy’s development plans”. Arcadia’s General Manager, James Gillard, said the agreement with Carbon Energy is the first step in Arcadia’s plans to move from a pure electricity trading position into a physical power business in the Australian market.

Carbon Energy will develop the power station and related infrastructure works initially for a capital cost expected to be in the range $30-35 million. It is intended that Arcadia will acquire the power station once Carbon Energy has secured longer term tenure over its coal rights in the form of a Mining Lease and subject to some commercial conditions being met. Carbon Energy would then supply syngas (under a long term gas supply agreement) to Arcadia as owners of the power station. A 300MW power station fuelled by syngas would require initial field development by Carbon Energy of approximately $100 million in capital expenditure, backed by a gas supply agreement. Carbon Energy’s plans to deliver low cost base load generation capacity in Queensland can be expected to ease the pressure of increasing electricity prices on households and businesses across Queensland.

Arcadia Energy Trading is a wholesale commodity trading company with specialist electricity, oil and environmental business streams.   Arcadia Energy Trading is a wholly owned subsidiary of Farahead Holdings Limited and part of a group of energy and shipping companies including Golar LNG Ltd, Arcadia Petroleum Limited, Frontline Limited and Seadrill.

www.carbonenergy.com.au

http://www.traderdealer.com.au/Fundamentals/cnx

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Carbon Energy Signs Supply Agreement for UCG Power Station

Monday, July 20th, 2009

Carbon Energy (CNX) announced today the signing of its first commercial contract in Australia, related to energy generated from the Underground Coal Gasification (UCG) process. This represents a major step forward in Carbon Energy’s commercialization process as it demonstrates that syngas (produced via the UCG process) has the ability to become an important and viable alternative source for Australia’s energy future. Carbon Energy has signed a commercial off – take agreement with Ergon Energy, a Queensland Government owned electricity provider.  The contract is worth approximately $2 million per year and is for electricity produced at Carbon Energy`s 5MW syngas-powered elec tricity production facility, currently being constructed at Bloodwood Creek in the Surat Basin.  The first electricity is expected to flow into the local grid by the end of this calendar year. The planned facility will generate enough power to supply approximately 4,000 homes per year. Carbon Energy sees this contract as a major step forward in the company’s commercialisation plans as it enables the company to monetise a very small part (0.5 PJ per annum) of its massive 7,750 PJ (s yngas) recoverable energy.

“The establishment of the 5MW station is a major step towards full commercial production, said Managing Director Mr Andrew Dash. However, it`s really only the first step. We intend to move forward quickly with plans for an additional 20MW power station at the Bloodwood Creek location in 2010.The 5MW we see as mainly a proof of concept for power generation, and the experience gained will assist with the planned 20MW expansion. “

Carbon Energy will utilise its experience from the delivery of the planned 5MW and 20 MW stations in Queensland for future projects both in Australia and overseas in key markets such as India and the United States. Carbon Energy is currently evaluating a number of alternatives for Carbon Capture and Storage and plans for the additional 20MW power station will allow the company to demonstrate Carbon Capture and potentially carbon storage (CCS). The UCG process can reduce clean coal power generation costs by between approximately 30 % and 50% and deliver a more environmentally friendly method of power generation than the traditional coal fired plants currently in operation.

www.carbonenergy.com.au

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