Australia Leigh Creek to Develop Underground Coal Gasification in China

Leigh Creek Energy (LCK), an Australian company focused on developing the underground coal gasification (USG) project Leigh Creek in South Australia, announced Tuesday a Heads of Agreement (HoA) to develop a similar project in China.

It was signed with bioenergy technology company China New Energy (CNE), Kallanish Energy learns. The two firms will establish a joint venture to produce hydrogen and fertilizer using underground coal gasification methods.

The process, also called in-situ gasification (ISG) converts coal from its solid state into a gaseous form, resulting in the generation of synthesized gas (syngas).

Syngas is used to either produce electricity or to be refined into products such as synthetic methane and ammonia. It allows energy production from coal while avoiding combustion, which creates heat and carbon dioxide.

“China is a nation that is rich in coal with large resources of stranded coal that are suitable for ISG,” said LCKs executive chairman Justyn Peters.

“The HoA with CNE is exciting as it presents a huge opportunity for LCK to move into such a large energy market as China,” he added.

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