Leigh Creek Energy has been given more time to test its underground gas project after progress stalls
Leigh Creek Energy has been granted a four week suspension of the trial period for its underground gasification project in the Far North, as it looks at options to reignite the underground coal resource
Leigh Creek Energy has been granted a four week suspension of the trial period for its underground gasification project in the Far North, as it looks at options to reignite the underground coal resource.
The company was granted approval for a 90-day trial project to show that it could safely and economically produce gas using the underground coal gasification method, which involves igniting coal underground and capturing the synthetic gas which is produced. LCK said its gasifier was started on October 10 and “first syngas” was announced the next day.
“We have detected trace amounts of gasification products (methane, carbon monoxide) and have observed slowly increasing water content in the product gas and slowly rising casing shoe temperature, all indicative of combustion continuing,’’ the company told the SA regulator on November 5.
“However, after three weeks of carefully management of gas flows to try to establish full gasification in the chamber, the development of the gasifier has not progressed further.’’
The regulator has granted the suspension, effectively giving the company more time to conduct its trial. LCK announced the news to the ASX after being contacted by The Advertiser, and said it had not released it earlier as it was deemed “procedural and not material’’.
“The site has been operating in exactly the same manner since the 10th of October and continues that way now,’’ the company said.
LCK said it was preparing to inject an “approved fuel source’’ to provide an additional heat source to accelerate the gasifier development process.
Greens environment spokesperson Senator Sarah Hanson-Young said the trial should never have been approved and the state should focus instead on renewable energy. The company’s shares were trading 2c lower at 14c.