Linc fEnergy Ltd proposes to produce ultra-clean synthetic liquid fuels through the underground coal gasification (UCG) of “stranded” coal resources that are considered to be sub-economic. This is due to coal quality, unfavourable deposit characteristics, and/or the distance from transport infrastructure.

UCG involves drilling holes into the coal seam, heating the coal in place and introducing a mix of air or oxygen and steam to cause gasification rather than combustion of the coal. The resulting 'syngas' would be used as feedstock for a gas to liquids (GTL) plant and for power generation in a gas turbine.

The project will be located on Linc Energy’s mining and exploration tenements 20 kilometres south-west of Chinchilla, in southern Queensland. It will be developed in stages, progressing from a proposed four barrel per day (bpd) demonstration GTL plant (not part of the significant project declaration), to a commercially-viable GTL plant producing approximately 40 000 bpd of diesel, as well as using the syngas to produce 200 megawatt of power in combined cycle power generation plant.

The UCG process was developed in the former Soviet Union, where it has been used for power generation for over 40 years. Sasol (South Africa) has also been operating full-scale coal-to-liquids 'synfuels' plants using similar technology to Linc Energy’s proposal since the 1950’s, where it provides 25 per cent of South Africa’s transport fuel requirements.

Environmental Impact Statement process

On 17 May 2007 the Coordinator-General declared the Linc Energy Underground Coal Gasification, Gas-to-Liquids and Gas-fired Power Plant project to be a 'significant project' for which an Environmental Impact Statement (EIS) is required in accordance with Part 4 of the State Development and Public Works Act 1971 (Qld).

On 10 August 2007 the Federal Minister for the Environment and Water Resources determined the project constituted a ‘controlled action’ pursuant to the Environment Protection and Biodiversity Conservation Act 1999 (Cth). The EIS process is accredited under a bilateral agreement and will address matters on behalf of both the Australian and Queensland governments. The process is being coordinated by the Department of Infrastructure and Planning on behalf of the Coordinator-General. The preparation of the Terms of Reference for the EIS is the first stage of the assessment process.

The Coordinator-General invited comments on the draft Terms of Reference (TOR) for the EIS. Submissions on the draft TOR closed on 24 September 2007.

Submissions on the draft TOR have been considered and, where appropriate been incorporated into the final Terms of Reference.

Resources

• Initial Advice Statement ( 519 KB)
• Linc Energy site location map ( 478 KB)
• Terms of Reference ( 1.4 MB)

Further information

Information regarding the project can be obtained from the Linc Energy Ltd website.

For further information regarding the EIS process for the project, contact the Infrastructure and Economic Development Group and address your enquiry to the Linc Energy Underground Coal Gasification Project.