Linc Energy submits demonstration plant permit

THE BOURSE WHISPERER: Linc Energy has submitted a permit application and commenced the approval process for Gasifier 6, which the company claims will be the first Underground Coal Gasification (UCG) demonstration plant in the United States for over twenty years.
Linc has submitted its application with the Wyoming Department of Environmental Quality (WDEQ) to build and operate the UCG demonstration plant in the Powder River Basin of Wyoming.

Linc Energy Chief Executive Officer, Peter Bond, said that the plant will allow the Australian company to prove to US stakeholders, investors and potential commercial partners, the viability of the UCG technology in the USA.

“What makes this so exciting is the opportunity to introduce the enormous potential of UCG to an American audience, and prove that it can be done in an environmentally sound and sustainable manner in the backyard of the largest energy market on the planet,” Linc Energy chief executive officer Peter Bond said in the company’s announcement to the Australian Securities Exchange.

“This is not just important for our USA customer base, but the success of Gasifier 6 in Wyoming will have a multiplier effect across whole regions and countries that will see this as just one more reason to adopt UCG into their energy platform.”

The Gasifier 6 permit application is based upon more than 16 months of continuous work and collection of baseline data carried out by the company.

As part of the permitting requirements and site feasibility, Linc Energy has conducted drilling and coring operations, hydrogeological studies with baseline groundwater sampling and wildlife and vegetation surveys on the UCG demonstration site located near Wright, Wyoming.

The application includes detailed hydrogeology models, UCG cavity growth models and subsidence control models prepared using Linc Energy’s proprietary UCG technology.

Linc Energy controls approximately 184,210 acres (745 square kilometres) of State owned coal leases within the Wyoming Powder River Basin.

In addition to its original GasTech lease acquisitions in 2009 and 2010, the company has acquired an additional 17,280 acres of coal leases from the State of Wyoming in 2011.

Following the submission of the UCG permit application, the WDEQ will perform a completeness review and then open a public comment period.

Linc Energy anticipates this to take approximately 180 days and once the permit is issued construction for the surface facilities will commence.

“Linc Energy anticipates igniting the Gasifier to complete the 90 day gasification demonstration at the Wyoming UCG demonstration site in the second quarter of 2012,” Bond said.

“After demonstrating to the WDEQ that Linc Energy has met the conditions outlined in the permit, the company intends to develop commercial UCG operations in the Powder River Basin.”