Bloodwood Creek is the pilot site for Carbon Energy’s first trial into commercialising its proprietary Underground Coal Gasification (UCG) technology keyseam®. Site selection and geological modelling assessment was used in the selection of this key project as well as meeting the Company’s resource requirements and economic evaluation. In addition, its location away from prime agricultural land and well clear of good quality aquifers are important in meeting Carbon Energy's environmental and social responsibility criteria.
The property known as Blue Gum is ideal for the type of commercial development Carbon Energy has planned as it is close to key infrastructure corridors and importantly is west of the Rabbit Proof Fence. The significance being that the area does not contain Strategic Cropping Land and as such is not suitable for high value agriculture or residential development.
Carbon Energy’s cost of producing syngas will be lower than that of other sources of gas in Queensland with a smaller carbon footprint and a fraction of the surface impact associated with traditional coal-fired power generation, meaning the Company is well placed to contribute to the State’s clean energy mix of the future.
Carbon Energy’s pilot-scale 5MW Power Station is located at Bloodwood Creek between Dalby and Chinchilla in the Surat Basin and will be Australia’s first commercial power generation from UCG syngas.
This first phase of power generation is worth $2 million p.a. to Carbon Energy from an off-take agreement signed with Queensland Government-owned Ergon Energy to supply the local electricity grid and is an important first step in UCG contributing to Queensland’s clean energy mix of the future.
In August 2011 Carbon Energy achieved an Australian First in power generation by producing electricity from this Syngas Power Station.
Phase 2 of power generation will see an additional 25MW Power Station co-located with the 5MW Power Station at Bloodwood Creek.
Arcadia Energy Trading is Carbon Energy’s Power Station development partner for the 25MW demonstration-scale facility.
This power plant is expected to incorporate carbon capture technology, an important step in providing a low-emission solution for electricity generation. Discussions are currently underway for the selection of suitable technology to achieve this goal.
The scoping study for this project will be progressed in 2011.
To ensure that Carbon Energy’s growth path is secured at our Queensland location, we finalised the purchase of 517 hectares of land located close to our Bloodwood Creek site near Dalby in early 2009.
A commercial-scale 300MW Power Station is envisioned as being the first stage of Blue Gum Energy Park to be fuelled by UCG syngas from our Bloodwood Creek site.
The 300MW Power Station could supply electricity to other prospective manufacturing facilities that co-locate at Blue Gum with the balance of generated electricity flowing into Powerlink’s national electricity grid located a short distance from the Blue Gum site.
This power station will be capable of exporting enough electricity to supply the equivalent of more than 300,000 homes.
