Madrum, what I was talking in relation to target formations, not the technology itself. Article below is the proof.
1. What formations should Cnx target to drill and when is the good time for the technology to be recognized.
2. Where are the best places for this practice at the moment and how to get more finances.
1. There're two types of coal seams ranging from 350m-1000m+ depths. They're minable and un-minable coals.
Minable coals are rich in gas. They're the main target for CSG operators. The coal seam is shallower and is closer to water table aquifers. Almost CSG operators do not use FRACKING, except for AGL.
Unminable coals are deeper and thinner type of coal seam but this is one of the best target for UCG operators in order to satisfy the required condition for environmental activists.
Under deeper formations there're Toolachee, Daralingee and Patchawarra formations. Those are tight gas but the Surat basin is well known for CSG explorations.
According to Arrow energy, the completed CSG wells are not reusable once the gas is extracted. The areas could be use for Geothermal and coal miners.
If Geothermal explorers can go further for the gas. Why shouldn't Cnx go for UCG underneath this coal rich region, the Surat.
Agl hired Halliburton to frack its CSG wells because of its limited acreages in NSW. That's why It has problems with the activists.
So the only way to go for UCG technology is deeper down the earth surface.
Is Qld gov. trying to lure more coal miners after all the CSG wells have been fully explored. WGC2015 mentioned Coal is the short target and gas is one of the best of diversified energy needs.
Once explorers could prove gas is cheap enough to compete with coal then the coals underneath the Surat could be burried forever, hence It's an opportunity for Cnx.
2. In my idea, the best places are located closer to gas fired power plants. That will reduce the costs of CO2 transportation and gas pipelines to feed into the generators.
Agl has teamed up with Air Cleane to create a pollution free image for one of its dirtiest coal generator.
Agl's main purpose is to use all coals available to power its electricity needed to supply to its Australian customers. Agl wants to prove it's one of the cheapest energy provider that's why you see It offers free electricity on Saturday because the governments don't really care about Carbon.
Agl's gas will be available for trading purposes in the East coast gas market.
Cnx needs to to find more J.V. partners with utility companies in order to borrow more from the banks. Origin and Stanwell are examples because they will use gas to power their plants if the local gas is cheap and in reverse they will use coal and the gas will be exported or traded. Could Cnx prove to deliver cheaper gas?
Cnx needs to futher processed the Syngas to Methane in order to survive in this low gas (oil) price environment.
Another thing is about CCS. CCS is not well established in Australia. It requires years for the CO2 to be stored to the voids created from gasification or to be stored to other formations.
At the moment, the higher the CO2 contents the more Cnx has to pay for transportation costs. So It makes more sense to work with company like Air Cleane.
Africa Australia United Kingdom United States
April 30, 2014 2.24pm AEST
[paste:font size="6"]Is ‘underground coal gasification’ the new fracking?
Mohammad Rasul[/paste:font]
Associate Professor, School of Engineering and Technology at Central Queensland University
DISCLOSURE STATEMENT
Mohammad Rasul does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
Central Queensland University is not a member of The Conversation and does not financially support the project. Find out more.
Could UCG be the best way to clean up coal? Jeffrey Beall/Flickr, CC BY-SA Recent news that a gas project in Queensland has been charged with environmental harm has put the spotlight on underground coal gasification, or UCG.
Linc Energy’s Chinchilla project was a pilot UCG project which was completed in October 2013. Following a nine-month government investigation, the project now faces a potential fines of A$2 million over alleged “serious environmental harm”. The company has vowed to fight the charges, and claims regulation favours the rival coal seam gas industry.
UCG, like coal seam gas (CSG), is an unconventional method of extracting gas from coal seams. It is also considered a “clean coal” technology — offering a way to continue exploiting coal resources while reducing greenhouse gas emissions. While it is estimated that Australia has reserves of 1 trillion cubic metres of CSG reserves, there may be 12 trillion cubic metres of UCG.
Despite trialling the technology since the 1980s, UCG has so far failed to achieve the environmental standards needed for commercialisation. So, what is UCG, and are concerns about environmental impacts justified?
What is UCG?
Coal gasification is a technology for producing synthesis gas (a mix of hydrogen and carbon monoxide) from coal before it is burnt. This “syngas” can be processed further for fuel or chemical products.
Unlike fracking, which involves pumping fluid into coal seams to cause fractures, in UCG the entire process takes place underground within the coal body. Coal is ignited by injecting oxygen into the coal seam. The combustion converts carbon in the coal to CO2 and heat. This heat drives secondary reactions between CO2 and water to produce carbon monoxide (CO), hydrogen gas (H2) and methane (CH4). The gases are extracted through a production well, leaving tar, solid char and bottom ashes in the cavity.
These gases can be used to generate electricity, and the hydrogen can be used to power fuel cell vehicles.
UCG is considered a “clean coal” technology. When coupled with electricity generation, UCG produces 25% less greenhouse gases, 80% less nitrous oxides, and 95% less sulphur oxides per megawatt hour than traditional coal-fired power generation.
UCG in Australia
In Australia there are very good prospects for UCG development, particularly in abandoned or exploited CSG fields.
UCG projects were initiated in the 1980s. There have been three pilot projects, all in Queensland — Linc Energy’s Chinchilla project, Cougar Energy’s Kingaroy project, and a study program between Carbon Energy and CSIRO at Dalton.
During its life-time the Chinchilla project successfully produced gas for electricity generation — considered the western world’s ground-breaking UCG achievement — and liquid gas for fuel.
But water contamination from Cougar Energy’s project forced the project to close in 2011, and with pilot stages complete, the Queensland government on the recommendation of an independent scientific panel has refused approval for commercialisation until the industry can prove that UCG projects can be safely decommissioned and prevent groundwater contamination.
Environmental impacts
The major environmental concerns for UCG stem from subsidence, water contamination and greenhouse gas emissions.
However these issues can be resolved by targeting deeper coal seams; most current UCG projects focus on shallow reserves. Subsidence decreases with the depth of the coal seam, and deeper coal seams are less likely to be in contact with aquifers.
UCG cavities deeper than 800 metres could also be used for CO2 sequestration, where cap rock and overburden layers can restrain the CO2.
Australian and New Zealand UCG projects are regulated under respective Mining Acts. Currently, these are not detailed enough to commercialise UCG.
But in Alberta, Canada, deep UCG pilot projects are ready for commercialisation, and suitable regulation has been provided by the Albertan mining regulator.
Where to from here?
Deep coal deposits are the future for UCG. Coupling UCG with electricity generation and carbon capture and storage is a environmentally safe and economic method for exploiting unconventional coal resources.
In Australia, the coal deposits of Queensland are the most suitable for such projects, and should be an area for further research and development. With 100 years of effort and investment in the technology, we now need governments to update regulation to encompass UCG.
