First underground coal gasification license issued in 20 years
November 10, 2014 | By
Doug Peeples
After a lengthy approval process, Linc Energy has been approved for a research and development license to conduct an underground coal gasification demonstration project. Issued by the U.S. Environmental Protection Agency (EPA) and the Wyoming Department of Environmental Quality, it is the first such license issued in 20 years for a procedure largely abandoned by the energy industry. Underground coal gasification (UCG) is a process in which wells are drilled to convert coal to gas while it is in a coal seam that has not been mined. Injection wells are drilled to provide air or oxygen to provide fuel for underground combustion. Separate wells are used to bring the gas to the surface. The process has been considered controversial because of environmental concerns, but it has a relatively small footprint, particularly when compared to a mine. The process has a long history in the energy industry, but finding the right process to make it work has been elusive -- and so it has been neglected. Linc Energy, however, is convinced it has the technology to make it work. The Australian company will have its chance with the demonstration project in Wyoming's Powder River Basin. The company has completed several successful tests on a small scale in Australia. There are several advantages if the company's technology succeeds on a larger scale. Coal that could not be cost effectively retrieved can be used. The process results in a product that is cleaner than coal and is not difficult to purify to meet natural gas standards. Also, it involves low levels of heavy metals, and carbon dioxide is easily contained. Linc Energy's Wyoming site project will serve at least two important purposes. If successful, it will validate the company's process for larger commercial operations. It also is considered a way to alleviate concerns from landowners worried about how UCG might affect their groundwater. Water monitoring wells will be used as the project continues. The company is optimistic enough about its technology that it has serious plans for expansion, and has agreements and ongoing explorations in countries other than the U.S. and Australia. For more: © 2014 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. |