Cougar Energy is set to embark on a joint venture agreement with Ignite Energy Resources to investigate an underground coal gasification project on tenements in Victoria's Gippsland region in Victoria.
Exploration drilling is planned to kick off as soon as the agreement is signed .
Under the terms of the joint venture, Cougar Energy and Ignite Energy Resources will each have a 50 per cent stake in the UCG Joint Venture. Cougar Energy will contribute $1 million for the initial exploration drilling activities and associated work programs.
The UCG technology of Ergo Exergy Technologies (Cougar Energy’s partner in its other UCG projects) will be utilised in the project
The areas of mutual interest in EL 4416 cover about 400sq km in the lignite-rich Gippsland region.
The UCG Joint Venture will assess these target areas for underground coal gasification development for power generation or the manufacture of petrochemical products. This work will lead to the appropriate feasibility studies as required for subsequent commercial development.
Cougar Energy’s managing director and CEO, Dr Len Walker said Ignite Energy Resources would bring significant tenement areas in Gippsland to the UCG Joint Venture.
"This is the first dedicated UCG project being investigated in the State of Victoria. It would follow successful implementation by Cougar Energy of its UCG technology in Queensland,” Dr Walker said.
“Projects using our UCG technology will be of great benefit to Victorians. Emissions from gasification of lignite will be about 40 per cent lower than current lignite-fired power stations operating there - and these CO2 emissions can be further reduced by biological or geological capture and storage when the carbon pricing/offsets policy settings are in-place.
"We anticipate that Cougar Energy and Ignite Energy Resources can play a significant role in the expected roll-out of gas-fired electricity generation to complement the existing lignite-fired electricity generation over the next decades in Victoria."
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