A COMPANY experimenting with underground coal gasification (UCG) in southern Queensland predicts its trial project will produce synthetic gas by October 2008.
Carbon Energy says the $20m trial project will play an important part in Queensland’s overall energy mix.
The company’s director, Andrew Dash, believes the industry can co-exist with other extraction industries in the Surat Basin.
"UCG is a new additional source of energy in addition to traditional coal mining and coal seam gas,” he said.
The extraction methods recover underground coal that is otherwise unrecoverable due to its depth or low quality.
The company expects to gradually boost production, and hopes to establish a billion dollar ammonia and explosives project by 2012.
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