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Underground Coal Gasification
The Company, along with its joint venture partner, Western Warner Oils Ltd., are examining the possibility of using Underground Coal Gasification (“UCG”) as a means to convert the coal into product gas at its recently acquired Drumheller, Alberta property.
Nordic is currently making preparations to submit an application to the Province of Alberta for a UCG pilot project, only the second such project ever undertaken in Canada, and one of just a few in North America. In March 2009, the Alberta government, through the Alberta Energy Research Institute, announced that it was providing $8.83 million for a $30-million deep coal gasification project being undertaken by a Calgary-based company. It is expected the project will demonstrate the ability to produce environmentally clean synthetic gas from Alberta’s vast, deep, coal resources, with the future potential of utilizing the coal seams for carbon capture and storage.
The basic UCG process involves drilling two wells into the coal – one for injection of the oxidants (water/air or water/oxygen mixtures), and another some distance away to bring the product gas to the surface. This particular technique offers an alternative to conventional coal mining methods.
UCG is a gasification process carried out in non-mined coal seams using injection of oxidants, which brings the produced gas to surface through production wells drilled from the surface. The product gas could be used as a chemical feedstock or as fuel for power generation. The technique can be applied to resources that are otherwise not economical to extract and also offers an alternative to conventional coal mining methods for some resources.
Industry experts are predicting that there is going to be a resurgence and re-branding of coal-powered fuel in this country. Toward this end, new forms of extraction are being introduced and studied, including underground coal gasification, which boasts dramatic reductions in emissions, low energy costs and relatively minor surface footprints when compared to the surface and mining–based coal power plants commonly used throughout North America.
In July, Nordic's impending application for a UCG pilot project was featured in UCGP Update, an industry-leading newsletter for members of UCG partnership. To view the article, click here, and go to the bottom of page 6.
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