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sparty | 15 years ago
LINC Energy ASX:LNC an underground coal gasification company that has demonstrated that coal can be burnt underground and the resultant gas, SYNGAS, can be converted to a range of ultra-clean liquid fuel products including diesel and kerosene. The process is named UCG-GTL meaning Underground Coal Gasification Gas to Liquids. Both technologies have a long and successful history. LNC's UCG project has been running for 10 years and its UCG-GTL project for 3 years.
Linc Energy have several billion tons of UCG suitable coal (Arckaringa, South Australia) and a suite of projects around the world. Moreover LNC's Arckaringa coal is both deep and in a dry arid region of Australia far away from agriculture.
Linc Energy is currently developing a cookie cutter design for UCG-GTL plants designed to produce 20,000 B.O.E per day and is currently building a 20,000 BOE per day plant in South Australia.
Another exciting, much lesser known, emerging UCG play is Central Petroleum ASX: CTP who have around a trillion tons of proven UCG suitable coal in the even more remote, dry and arid and very sparsely populated Perdika Region that just happens to have a railway line stretching from Adelaide to Darwin nearby. The railway gives them access to S E Asia via the Port of Darwin and the Australian domestic market via Adelaide. CTP have a long term interest in both UCG and above ground coal gasification and the conversion of the resultant Syngas to liquid fuels and fertilizers.
While LINC has a respectable market cap of $890m and a lot of cash, Central Petroleum has over a trillion tons of coal, approx. 250,000 sq kms of unexplored coal and oil prospective basins across central Australia and a market cap of just on $58m and about $20m cash making CTP one of Australia's best speculative investments.
If LNC and CTP were to team up Australia would rapidly become both a major oil exporter and liquid fuel independent.
(I hold LNC and CTP)
For more information about UCG and GTL please see www.ucg-gtl.com.
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