Published Wednesday, 23 May, 2007 at 05:07 PM

Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh

LINC ENERGY’S COAL GASIFICATION DECLARED ‘SIGNIFICANT’

23 May 2007

The Coordinator-General has declared the Linc Energy Underground Coal Gasification (UCG) project, incorporating demonstration plants of gas-to-liquids and gas turbine power generation, near Chinchilla, to be a “significant project” for which an Environmental Impact Statement (EIS) is required under the State Development and Public Works Organisation Act 1971.

Deputy Premier and Minister for Infrastructure, Anna Bligh said that the Underground coal gasification technology offers the potential to utilise parts of Queensland’s vast coal resources that are currently uneconomic to recover.

Underground coal gasification involves drilling holes to the coal seam, heating the coal in place and introducing a mix of air, oxygen and steam to cause gasification rather than combustion of the coal. The hydrogen and carbon monoxide produced is cleaned and can be used for liquid fuels production and power generation.

“The decision to declare the project to be a ‘significant project’ signals that the underground gasification and gas to liquids technologies proposed to be used are new to Queensland and warrant a robust impact assessment of environmental, social and economic effects,” she said.

“If the gas-to-liquids (GTL) demonstration plant and feasibility study are successful, Linc Energy proposes to develop a plant with a production capacity of at least 20,000 barrels per day of ultra-clean diesel and other transport fuels. This would reduce Australia’s dependence on imported oil and diversify the use of Queensland’s coal resources.

“In addition, Linc Energy’s proposed 200 megawatt gas-fired power station using fuel from the UCG process would produce lower greenhouse gas emissions than a conventional coal-fired power station.

“Linc Energy Ltd is a Queensland company that is seeking to become a leading producer of ultra-clean synthetic fuels for the Australian and world markets. The company has entered into a number of strategic partnerships to advance the project, including with the Skochinsky Institute of Russia as the on-site technical advisors.”

In 1999 Linc Energy established a pilot UCG facility at its project site in the Surat Basin, 20km south-west of Chinchilla, in southern Queensland. Approximately 35,000 tonnes of coal were successfully gasified during a 30-month period, which is by far the largest and the longest run trial of UCG in the Western World to date.

“The draft Terms of Reference for the EIS, will be released for public comment shortly.
“I encourage anyone with an interest in this new project to review information on the proposal, set down in the Initial Advice Statement, at www.infrastructure.qld.gov.au/eis, and provide input into the Terms of Reference,” said Ms Bligh.

Media contact: Deputy Premier’s Office 3224 6900