Underground coal gasification proposed for Oklahoma

By OGJ editors
HOUSTON, Dec. 6
-- Clean Global Energy Ltd. intends to purchase an existing Farrell Cooper Mining Co. coal mine and supply syngas generated from underground coal gasification to AES Corp.'s Shady Point power station, near Panama, Okla. The mine site is about 15 miles from the power station.

For Stage 1, the Australian company plans to produce sufficient UCG syngas to generate as much as 25 Mw of electricity by mid- to late 2012. Its planned Stage 2 will expand the UCG facility to produce enough syngas to generate 100 Mw of co-fired power at the AES power station. The final Stage 3 will increase syngas production to generate 300 Mw by mid-2015.

The company envisions Stage 3 to entail the AES Shady Point power plant adding a new combined-cycle gas-fired generator to its existing generating capacity.

Clean Global Energy estimates that the UCG project cost for the full 300-Mw syngas plant is about $140-150 million (Aus.) and will generate revenues at full production in excess of $41 million (Aus.)/year.

The company uses a process called linear controlled retractable injection point underground coal gasification to produce syngas. In the process, the raw UCG syngas from the production well passes through several processes to produce regular, premium, or ultra syngas depending on market requirements.

Clean Global Energy expects to formalize binding agreements with AES and Farrell Cooper within the next 120 days, during which time it will seek regulatory amendments and approval to use the mine site for UCG production along with easement access for a 15-mile pipeline and funding commitments.

The company currently has projects in Australia and Inner Mongolia, China. It expects to complete its $400 million Inner Mongolia UCG project in stages over 3 years.

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