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.