Linc Wins Approval for Coal Gasification Project

Linc Energy announced Monday that it has gained initial approval from the Polish Ministry of the Environment to commence an Underground Coal Gasification (UCG) project in Poland.

The project will take place upon the company’s nominated UCG site within its coal resource license area near Krakow in Poland. The site is ideally located and is well researched, with Linc having already completed coal resource drilling, a seismic survey and a detailed evaluation of the coals geological conditions indicating that this coal is very suitable for UCG operations.

The company’s internal evaluation indicates that its Polish coal resources could produce approximately 28.3 trillion cubic feet (800 billion cubic metres (Bcm)) of pipeline gas across the life of the combined UCG projects at the rate of 353.1 billion cubic feet ( 10 Bcm) of gas per annum for the next 80 years.

During the first stage of the Polish UCG project, Linc, working closely with Polish regulators, will undertake gas production trials and verification of its proprietary UCG process.

The aim of this stage will be to confirm that UCG operations in Poland are operated as a safe and environmentally acceptable method of industrial scale gas extraction that can be adopted as a commercial energy solution in the near future.

Linc will be working with a number of local Polish companies and research organisations during the construction and operation phases of Linc's first UCG facility in Poland. Linc Energy is still seeking finalisation of some necessary regulatory approvals prior to construction commencing.

As part of the new Polish UCG demonstration operation, Linc intends to move some of its existing UCG equipment and Gas Lab from Chinchilla in Australia to its site in Poland, as well as re-using a significant amount of UCG production equipment, with key items anticipated to commence arriving in Poland by the end of the 4th quarter of 2014. As such, Linc expects stage one of its Polish UCG facility will be very cost effective and fast to construct.

Peter Bond, chief executive officer and managing director of Linc Energy said; “It is pleasing that all our hard work and investment is starting to move forward to an operating UCG facility in Poland. As we commence these initial trials of our well proven and patented UCG process, I believe that UCG will start to change the current energy landscape in Europe through its ability to create gas self-sufficiency in those markets that are currently dependent on imported gas supplies. After all, once Linc Energy takes its Polish UCG operations to a commercial scale, Linc Energy alone could replace 353.1 Bcf (10 Bcm) of gas per annum for in excess of 80 years."


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