Carbon Energy Limited (ASX: CNX) today announced an ‘Australian first’ in achieving electricity generation using syngas produced through its unique process of Underground Coal Gasification (UCG).

The Company has achieved this Australian first at its UCG syngas power plant at Bloodwood Creek in Queensland.

Carbon Energy Managing Director Andrew Dash said this achievement represents a major step forward for the Company as its moves closer to its first revenue milestone – connection to Ergon Energy’s local electricity grid, expected in October this year.

“The facility confirms Carbon Energy as a world leader in UCG technology development and expertise that delivers lower emissions energy from coal,” he said.

Mr Dash said this landmark achievement brought cleaner, low-cost energy closer to commercial reality and builds on the10-year UCG technology research previously conducted in conjunction with the CSIRO.

“The generation of electricity from syngas further demonstrates the value of UCG in delivering a viable method of power generation, which is more environmentally friendly than traditional coal-fired power plants,” he said.

“Importantly, as demand for low-cost, cleaner energy continues to grow in Australia and around the world, our capabilities to produce base-load electricity from otherwise stranded coal resources will be valued more significantly by the market.”

Over the past weeks, Carbon Energy has been focused on successfully testing its gas engines under load. Electricity is currently being produced at the maximum rate allowable under current approvals, with up to of 1 MW of electricity being generated and transmitted into a load bank, located at site. This replicates continuous supply of electricity into the grid and confirms the use of syngas for sustainable electricity generation.

Testing of each of the three engines in turn will continue over the coming weeks ready for connection to Ergon Energy’s local area network in October.

Work also continues to progress with the Queensland Department of Environment and Resource Management (DERM) on amendments to the Company’s existing environmental approvals to ramp-up production to 5MW.  These approvals are being progressed in parallel to the connection of the power station to the local grid.

Mr Dash said Carbon Energy had recently announced expansion projects in the United States, Chile, and Turkey, but the Bloodwood Creek project was the first step in the Company’s plans to generate electricity for the domestic market.

“UCG power generation creates a much lower environmental impact than many other coal and gas extraction methods. It can also generate more energy from the same resource space and monetises otherwise stranded coal resources for more efficient utilisation of the resource,” he said.

http://www.carbonenergy.com.au/images/20110810%20first%20electricity.pdf

An exclusive Sunday Mail-Channel 9 survey has found 96 per cent of Queenslanders want the best farming land protected from mining and development.

The Heart of the Country survey, based on 1000 responses, was conducted in the lead-up to this week’s Ekka. The full results will appear in The Sunday Mail next week.

In the Surat Basin west of Brisbane, small farming communities have been decimated as the race for mining riches forces families off properties after decades of working the land.

http://www.couriermail.com.au/business/mining-companies-buying-up-prime-farmland-across-queensland-despite-public-opposition/story-e6freqmx-1226109901427

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