Synthetic gas developer Leigh Creek Energy (ASX: LCK) has announced it is in discussions with a number of manufacturers to commercialise its project located at the former Leigh Creek coal field in South Australia.
The company said in a statement it has successfully completed pre-commercialisation testing at Leigh Creek, producing more than seven million cubic feet of syngas per day from a single underground chamber.
As reported in @AuManufacturing, the company is using in situ coal gasification (ISG) technology to convert coal to gas, and plans 20 such underground chambers when in full scale production.
LCK managing director, Phil Staveley said the company had achieved the objectives of its trials and converted the resource to reserve status.
The resource is equal to 7.8 per cent of Australia’s east coast gas reserves.
“We are already progressing with commercial arrangements for our project.
“The effect of the trial has effectively unlocked a large energy resource of huge value…ISG can be successful in a commercial application.”
Staveley said the company had received multiple expressions of interest from local and international energy and fertilizer companies.
“The company is continuing to advance these discussions toward a potential joint-venture or partnership and looks forward to updating the market at the approp[riate time.”
the company envisages a pipeline to nearby Spencer Gulf, the location for a planned major downstream user plant and export facility.
Picture: Leigh Creek Energy
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