Australia-based Linc Energy has successfully produced the first hydrocarbon liquids from its Chinchilla demonstration facility which introduces underground coal gasification (UCG) synthesis gas into a Fischer-Tropsch reactor that produces high quality synthetic fuel. (Earlier post.) Linc’s stock rose on the news, closing up more than 10% on the day of the announcement.
|The aboveground Chinchilla demonstration plant that uses the syngas from UCG to produce fuels. Click to enlarge.|
Linc Energy says it will continue to operate its GTL demonstration facility and use the experience gained to assist with finalizing the engineering scope for the company’s proposed 20,000 barrels per day commercial facility that is planned for commencement of construction in the next 12 months.
Linc also announced completion of a A$17 million (US$12 million) placement.
A few days prior, Linc Energy, the Vietnam National Coal-Mineral Industries Group (Vinacomin) and the Marubeni Corporation of Japan (Marubeni) executed a Business Cooperation Contract to undertake Underground Coal Gasification (UCG) and GTL fuel production in the Red River Delta adjacent to Hanoi in Vietnam.
Vinacomin has the rights to develop Vietnam’s coal assets in the Red River Delta area, which has an estimated 30 billion tonnes of coal based on exploration undertaken to date.
Under the Business Cooperation Contract, the companies agreed to undertake a four-stage project to verify the feasibility of exploiting the coal assets via UCG for both power generation and Gas to Liquids (GTL) production. Following the finalization of local approvals and initial civil works by Vinacomin, Linc Energy expects to commence construction of a UCG field in the Red River Delta area in the second quarter of 2009.