Linc Energy has been active near the town of Orroroo since it first began drilling and exploration on its Petroleum Exploration Leases in mid-2009. This program led Linc Energy to announce a significant coal mineralisation target of 1.0 to 1.3 billion tonnes of deep, low rank coal in November 2009.
Coal in the Orroroo region is anticipated to be in the required depth for Underground Coal Gasification (UCG). A drilling and exploration program was recently completed and it is expected that the acquired information will better define the coal target and summarise essential hydrogeological and geotechnical information for Linc Energy’s feasibility studies and UCG modelling.
Pending the outcome of the drilling and associated feasibility studies, expected in the third quarter of 2010, Linc Energy believes the area may have the potential to support a
200-plus megawatt gas-fired power station. Longer term developments may include power generation of up to 500 megawatts and a Gas to Liquids (GTL) facility to produce cleaner transport fuels, such as diesel and jet fuel.
The proposed project
There are a number of decision gates to cross. Assuming that the hydrogeological and geotechnical data is favourable, Linc Energy’s proposed project stages may be as follows:
Stage 1: Power Generation (pre-production)
This will involve the construction of a UCG Generator, anticipated for operation by the end of 2010. This will provide site specific gasification experience to gather engineering and environmental data to support Linc Energy’s project developments.
Stage 2: Power Generation
This will involve a power production project of up to 250 megawatts (15 petajoules per annum). The Orroroo site is about 35 kilometres away from major 275kV electricity transmission infrastructure.
Stage 3: Fuel production
It is anticipated that gas production will be increased to support a Gas to Liquids facility.
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