QLD company launches the first UCG power plant
Carbon Energy has launched its 5 Megawatt power plant at Bloodwood Creek near Cogan, about 50 kilometres west of Dalby in South West Queensland.
The power station, the first of its type in Australia, will be fuelled by gas produced from Carbon Energy’s underground coal gasification (UCG) process.
Carbon Energy’s managing director Andrew Dash said the power plant was an exciting project that positioned the company at the forefront of the world-wide quest for low emission energy from coal.
Work at the site is well underway with construction scheduled for completion in late December and the first electricity expected to flow into the Queensland grid in January 2010.
In July 2009, Carbon Energy announced that it had signed an offtake agreement with Ergon Energy to provide electricity directly to the local grid.
“Locally, the construction of this syngas-powered facility will be a major benefit, with the plant generating enough power to supply approximately 4,000 homes and providing energy security for the local area,” said Dash.
“Further, it will create jobs and help stimulate the local economy. It will also support the State Government’s aim of additional domestic generation capacity being provided by the private sector.
“Whilst the 5 MW plant is an important first phase project for Carbon Energy, we are already well progressed with our Phase 2 project, an additional 20-25 MW power plant, which will incorporate carbon capture and storage.”
To facilitate the carbon capture storage, Carbon Energy signed an agreement in July 2009 with Queensland company Zerogen. Planning for this project is expected to be finalized by the end of 2009, with electricity generation likely to commence in the first half of 2011.
Carbon Energy's ambition is for syngas to become the preferred feedstock for producing clean coal power stations, an alternative to oil-based fuel, agribusiness products (fertilisers and explosives), polyolefin products (such as plastics) and allowing for economic carbon capture.
Carbon Energy's technological advantage comes from its association with CSIRO including world class geotechnical, hydrological and gasification modelling capabilities.
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