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Clean Global Energy Limited (ASX:CGV) (CGE) is pleased to advise that it has established a new US entity, Clean Global Energy Inc. ("CGEI"), to target Underground Coal Gasification (UCG) projects throughout North America.

CGEI's first project in Oklahoma will see the acquisition of an existing mine site that has been mined to where the coal now becomes more suitable for extraction by UCG. The UCG Syngas produced at the mine site is proposed to be sold to AES Shady Point's coal fired power station approximately 15 miles from the mine site as per an announcement earlier today.

Stage 1 of the Oklahoma project is for the first production on site of UCG Syngas at a rate equivalent to the feedstock requirements to generate up to 25MWe of electrical power by mid to late 2012. Stage 2 will work towards expanding the UCG plant to generate enough UCG Syngas for a 100MWe of co-fired power at AES Shady Point power station and then Stage 3 the final expansion to generate enough UCG Syngas for 300MWe. Stage 3 envisages AES Shady Point adding a new combined cycle gas-fired generator to their existing generating capacity. The estimated UCG project cost for the full 300MWe Syngas Plant is approximately A$140 - A$150 million and projected revenues at full production in excess of A$41million per year. We envisage reaching full production by mid 2015. Funding of the project is proposed through our US entity.

The Oklahoma project will place CGE at the forefront of commercialising UCG in the western world. This project will be one of only a few dedicated UCG Syngas commercial production facilities selling UCG Syngas from day one to an end user.

CGE business plan to monetize the UCG Syngas by selling the Syngas itself as a feedstock to an end user is now being realised. CGE's technological advantage and expertise in the UCG industry globally is again being recognised by major international companies and this is leading to CGE securing outstanding opportunities and projects like our Oklahoma project.

CGE is focused on the commercial development of UCG in a number of major overseas markets and is determined to lead the way for this environmentally friendly and commercially attractive process of coal exploitation in Australia and internationally.

About Clean Global Energy Limited

 

Contact

Mr. John Harkins
Chairman and CEO
Tel: +61-2-9230-0318

Mr. Andrew Whitten
Secretary/Legal Counsel
Tel: +61-2-9264-2216

Clean Global Energy Limited
www.cleanglobalenergy.com.au



Link: Clean Global Energy Limited (ASX:CGV) Expands Into North America To Target Underground Coal Gasification Projects


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Related Industry Topics:
Gas & Oil Energy General Financial General Mining Coal Underground Coal Gasification

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