Coal gas industry goes back on trial

Australian
14 February 2011, Page: 23

THE shape of Queensland's fledgling underground coal gasification industry is becoming clearer, with one company allowed to continue a trial a week after the state government stopped a rival's test run. According to the government, Carbon Energy will be allowed to continue its trial at Kogan on the Darling Downs, suspended since July while the government investigated reports of an unauthorised discharge of process water from the mine.

The Bligh government banned Cougar Energy earlier this month from continuing its trial of underground coal gasification techniques at Kingaroy in southem Queensland, after reports of poisons leaking from the plant. Linc Energy's demonstration plant near Chinchilla is operating, but the company sees more of a future for its underground coal gasification technology at its holdings in South Australia.

The technique of burning coal while it is still underground to create energy has a long history overseas but has been controversial in Queensland. The Bligh government has been criticised in relation to the far bigger coal seam gas industry, which involves a different method of creating energy to underground coal gasification, but they are often lumped together. The government gave the three companies until the end of next year to prove the technology could work without damaging the environment. The state government came under extreme pressure last year to ban the Cougar plant at Kingaroy, after claims deadly chemicals were found on site.

Cougar strongly disputed this, but late last month, Queensland Climate Change and Sustainability Minister Kate Jones said the project could not resume "without an unacceptable risk of environmental harm". Carbon Energy has been allowed to proceed with its project at Kogan with several new conditions largely relating to better monitoring and infrastructure on site to prevent leaks. Ms Jones said the government would continue to closely monitor the activities of Carbon Energy and Linc Energy, which is continuing in the underground coal gasification trial.

"We take the protection of our environment very seriously and any company that wants to do business in Queensland must meet their environmental obligations", Ms Jones said. "When the contamination incident occurred at Cougar Energy's Kingaroy site last year, we said that if any company couldn't provide real evidence that it could operate safely, then it would not be allowed to continue.

"The decision last month to close down Cougar Energy's trial at Kingaroy demonstrates that we will not risk the environment or our communities if concerns cannot be addressed by a company". She said her department was "satisfied that Carbon Energy has demonstrated they will be able to operate within environmental requirements, after making changes to their operations and procedures".