Cougar signs UCG joint venture with Ignite for Gippsland brown coal

Cougar Energy has signed a joint venture with Ignite Energy Resources with an eye to developing an Underground Coal Gasification (UCG) project in Victoria's Gippsland region.

Cougar Energy has signed a joint venture with Ignite Energy Resources with an eye to developing an Underground Coal Gasification (UCG) project in Victoria’s Gippsland region.

The 50-50 joint venture will take ownership of all UCG interests within the EL 4416 exploration lease, but Cougar will manage the project and will provide an initial $1 million to cover drilling.

In addition, the joint venture will employ UCG technology from Ergo Exergy Technologies, a company that has partnered Cougar in other such projects.

The EL 4416 exploration lease is approximately 400 km² and lies within the lignite, or brown coal, rich Gippsland area.

Cougar Energy managing director Len Walker believes the tenement areas may be well suited to UCG projects.

“This is the first dedicated UCG project being investigated in Victoria and projects using our technology will be of great benefit to Victorians,” he said.

“Emissions from gasification of lignite will be about 40% lower than current lignite-fired power stations operating there.

“These carbon dioxide emissions can be further reduced by biological or geological capture and storage when the carbon pricing/offsets policy settings are in-place.”

Ignite chief executive Len Humphreys was anticipating great results from working with Cougar.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.