CARBON ENERGY LIMITED - ASX: CNX

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Description

At Carbon Energy our focus is on building a world-class business that produces clean energy and chemicals from Underground Coal Gasification(UCG). The diversity of product produced by the UCG process and the ability to deploy our technology globally enables Carbon Energy to work collaboratively with companies such as coal resource owners, chemical and fuel manufacturers, and power generators or for those who seek investment in substantial growth opportunities.

Bloodwood Creek, Queensland

Phase 1 Power Generation

Carbon Energy’s pilot-scale 5MW power plant is located at Bloodwood Creek between Dalby and Chinchilla in the Surat Basin and will be Australia’s first commercial power generation from UCG syngas. Due for completion by the end of 2010, this first phase of power generation is worth $2 million p.a. to Carbon Energy from an off-take agreement signed with Queensland Government-owned Ergon Energy to supply the local electricity grid and is an important first step in UCG contributing to Queensland’s clean energy mix of the future. Two new UCG panels have been successfully completed with drilling and above ground pipe-work construction was finalised for Panel 2 in August 2010.

Phase 2 Power Generation

Phase 2 of power generation will see an additional 25MW power plant co-located with the 5MW power plant at Bloodwood Creek. Arcadia Energy Trading is Carbon Energy’s power station development partner for the 25MW demonstration-scale facility. This power plant is expected to incorporate carbon capture technology, an important step in providing a low-emission solution for electricity generation. Discussions are currently underway for the selection of suitable technology to achieve this goal. The scoping study for this project will be progressed in 2011.

Blue Gum Energy Park, Queensland

Phase 3 Power Generation

To ensure that Carbon Energy’s growth path is secured at our Queensland location, we finalised the purchase of 517 hectares of land located close to our Bloodwood Creek site near Dalby in early 2009. A commercial-scale 300MW power plant is envisioned as being the first stage of Blue Gum Energy Park to be fuelled by UCG syngas from our Bloodwood Creek site. The 300MW Power Station could supply electricity to other prospective manufacturing facilities that co-locate at Blue Gum with the balance of generated electricity flowing into Powerlink’s national electricity grid located a short distance from the Blue Gum site. This power station will be capable of exporting enough electricity to supply the equivalent of more than 300,000 homes.

Mulpun Project, Chile

Chile provides an ideal market opportunity for Carbon Energy as the Country’s energy demand is forecast to grow at 6 to 7 per cent per annum over the next 5 to 10 years.

In December 2009 Carbon Energy signed its first international agreement with Antofagasta Minerals to jointly assess and develop a coal deposit in Mulpun, Chile using Carbon Energy’s UCG technology. Antofagasta Minerals S.A. has formed a new energy division called Mulpun Energy which has carriage of the joint project.

Environmental Approval obtained by Mulpun Energy in August 2010 gave the green light to the parties’ first stage joint UCG project in Mulpun. This is a key milestone in the development of the project and allows the parties to construct and operate a pilot scheme that includes their first UCG panel and on-site facilities.

To date, both parties have completed a significant program of work together including:

- site evaluation for the trial project including seismic assessment and syngas production modelling;
- completing a detailed work plan and budget for the initial trial project;
- obtaining Environmental Approval for the trial; and
- completion of a market and economic feasibility studies for a number of commercial uses for syngas, including power generation.

The primary focus going forward is the successful construction and operation of the first UCG panel in conjunction with commissioning studies into the optimal size and equipment selection for Carbon Energy’s first major power generation project in Chile.

Mine For

coal

Location of operation(s)

Queensland, Chile

Address

L12/301 Coronation Drive
MILTON, QLD, AUSTRALIA

Phone

07 3337 9944

Email

Website

http://www.carbonenergy.com.au/

Last Updated

15/04/2011