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Underground Coal Gasification (UCG) project in Surat Basin on track for approval

bloodwood-1Carbon Energy hopes to soon gain approval to begin construction of their proposed Surat Basin underground coal gasification (UCG) gasifier after delivering a key report to the Queensland Government on Friday.

With the Decommissioning Report submitted, the company’s focus is now on completing the Rehabilitation Plan for the Bloodwood Creek site, near Chinchilla.

The company expects to lodge the Rehabilitation Plan with the Government by the end of September 2014.

Carbon Energy is hopeful that it will receive a decision from Government shortly following submission of the Rehabilitation Plan for a commercial scale gas project, utilising  “advanced keyseam technology”.

In a statement the company said, “The Decommissioning Report comprehensively demonstrates the safe and effective decommissioning of the UCG gasifiers at the Company’s Bloodwood Creek site, and that decommissioning has occurred in an environmentally responsible manner and meets the strict criteria set by the Department of Environment and Heritage Protection (DEHP).”

“Demonstrating the ability to both decommission and rehabilitate the Bloodwood Creek project appropriately are key steps on the path to seeking approval from the Queensland Government to proceed with the next activities on the Company’s planned Surat Basin gas project.”

DEHP has confirmed that it is using external environmental consultants to assist in meeting the Company’s proposed timelines to which it has agreed in-principle.

CEO Morné Engelbrecht said “We continue to work collaboratively with the Queensland Government and have been impressed with its commitment to our proposed gas project. One keyseam project of ten square kilometres would produce enough gas to supply Queensland’s requirements for 25 years, which would position Carbon Energy as a major gas provider for Queensland, presuming a positive outcome from this process.” 

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