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Linc Energy and Huadian Coal to Team on UCG and FT in China

26 May 2008

Linc Energy Ltd has executed a Memorandum of Understanding (MOU) with China’s Huadian Coal Industry Group for the joint pursuit of opportunities to use Linc Energy’s underground coal gasification (UCG) technology (earlier post) and experience with gas-to-liquids Fischer-Tropsch (FT) fuel and chemicals technologies within China.

In addition, the two groups will investigate investment opportunities whereby Huadian Coal may invest in Linc Energy and possibly some of Linc Energy’s Australian projects.

Linc Energy and Huadian Coal will commence detailed negotiations during 2008 to establish their first joint venture UCG project in China.

Linc Energy is developing a CTL project in Australia (the Chinchilla project) that combines Syntroleum’s air-based Fischer-Tropsch technology with the syngas produced by underground coal gasification (UCG) technology.

Underground Coal Gasification (UCG) is a process through which coal is converted in-situ to a syngas that can be used as a fuel for power generation or as a chemical feedstock—e.g., to feed into a Fischer-Tropsch process for the generation of synthetic diesel.

Huadian Coal is owned by both China Huadian Corporation and Huadian Power International Corporation Ltd. China Huadian Corporation is one of only five companies within China that is permitted to generate power.

Huadian Coal is one of China’s largest coal mining companies, producing more than 30 million tonnes of coal a year. Huadian Coal owns in excess of 23 billion tonnes of coal in China. The company sees UCG as an important source of clean energy for both power and liquid fuels production.

The MOU is non-exclusive, allowing Linc Energy to pursue other prospective partnerships in China.

May 26, 2008 in Brief | Permalink | Comments (3) | TrackBack (0)

Comments

This technology has the potential to clean up much of China's worst pollution, and also can access their coal without dangerous unsafe mining.

However, it does not change or address the global warming situation.

Posted by: | May 26, 2008 at 10:58 AM

What is the net difference in CO2 & GHG (per Kwh) produced directly with coal fired power generating plants vs syngas power plants produced from coal with this process?

Posted by: HarveyD | May 26, 2008 at 01:49 PM

It seems that: (1) the average coal fired power plant produces about 1.0 Kg of CO2 per KWh produced and (2) the average NG power plant produces about 0.400 Kg per KWh produced.

OTOH, claims are that gasified coal fired power plants produce 40% less CO2 than direct coal fired plants. Would that be equivalent to about 0.600 Kg of CO2 per KWh produced?

What would be the caparable total efficiency vs the 35% to 55% presently obtained from direct coal fired Power plants?

Posted by: HarveyD | May 27, 2008 at 09:42 AM

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