The construction of the main power station facility is almost complete and the gas engines have been tested on air. The completion date for the project remains scheduled for the end of January 2010, with electricity flowing into the local grid around the same time.
Andrew Dash, managing director of Carbon Energy, said: “I am pleased to report that we are on track and expect to be operational, with electricity flowing into the local grid, in January 2010. The 5MW plant is an important first phase project for Carbon Energy for two reasons; we are achieving an Australian first with the fuelling of this type of power station from UCG Syngas; and secondly the electricity produced and sold into the grid will represent the company’s first revenue from its UCG activities.”
In July 2009, Carbon Energy signed an off-take agreement with Ergon Energy, a Queensland government owned electricity provider, for electricity produced at this facility. The contract is worth approximately $2m per year and will represent the company’s first revenue from its UCG activities.
Carbon Energy is also progressed with its phase 2 project, the construction of a 20-25MW power plant, which will incorporate carbon capture and storage technology, the company said.
