Clean Global and Greenpower to develop Vic UCG project

Brisbane (Energy Publishing) - Sydney-based underground coal gasification developer Clean Global Energy (CGE) will enter into a joint venture with Greenpower Energy to develop a proposed commercial UCG project on Greenpower’s Victorian coal tenements.

CGE will spend $1.25M over five years to earn a 75% interest in the coal tenements. The investment will go towards the design, engineering, construction and commissioning of a 1PJpa UCG syngas pilot plant.

Upon successful completion of the pilot plant, CGE will conduct a feasibility study for a 5-50PJpa commercial UCG syngas plant. Greenpower will then be offered the opportunity to jointly fund the commercial plant. If the company doesn't take up the offer, CGE may increase its interest in the joint venture to 85%.

CGE has begun discussions with third parties to develop a 400MW power plant in Victoria using syngas from the UCG project.