Leigh Creek Energy extracts ‘commercial’ quantities of gas during controversial underground coal gasification trial

A controversial gas project banned in Queensland has reached another major milestone during a pilot program in SA’s centre, extracting commercial quantities of synthetic gas for the first time.

Leigh Creek Energy's pilot gas plant in October.

• Leigh Creek project to go ahead following failed injunction bid
• Gas project has suspension granted after progress stalls

Leigh Creek Energy says it has reached another major milestone during a pilot program in the state’s centre, extracting commercial quantities of synthetic gas for the first time.

The company has labelled the feat at its former Leigh Creek mine, a “boon for South Australia”.

Managing director Phil Staveley said the milestone marked the success of the underground coal gasification trial, as the company had achieved all of its objectives.

“These are significant milestones that unlock a large energy resource and captures key data that proves and validates this disruptive technology will be successful in a commercial application,” Mr Staveley said.

“This data will enable the company to quickly move toward upgrading a portion of its current resource to bankable reserves — a key step that is required for the company to progress to commercial operations.”

The mining method involves coal being combusted underground, producing synthetic gas.

Greens Senator Sarah Hanson-Young said the news was a blow to regional communities, including traditional land owners who unsuccessfully tried to stop the project in the Supreme Court last year.

The project raised concerns after the practice has been banned in Queensland.

That followed a Linc Energy project which resulted in that company being successfully prosecuted for causing environ­mental damage.

“We are a proud renewables state, with new solar, wind, solar thermal and hydro projects in the pipeline,” Senator Hanson-Young said.

“We do not even need this form of energy generation — we should not be taking the risk.”

Leigh Creek Energy’s trial aims to show it can safely and economically produce gas using the underground coal gasification method.

It was granted a suspension of the trial late last year — effectively allowing it more time to complete the project.

The Adnyamathanha Traditional Lands Association had earlier fought for an injunction to stop the work, saying members were not properly consulted on the project and were concerned about its environmental impacts.

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