The new entity plans to acquire an existing mine site in Oklahoma where the coal becomes more suitable for extraction by UCG.

The UCG Syngas produced at the site is proposed to be sold to AES Shady Point’s coal fired power station about 15 miles from the mine.

The Oklahoma project divided in three stages will see enough production of UCG Syngas to 25MW of power by mid to late 2012 in stage 1.

During Stage 2, the UCG plant will be expanded to produce UCG Syngas for a 100MW of co-fired power at AES Shady Point power station, and a final expansion in Stage 3 will produce enough for generating 300MW of power.

For Stage 3, AES Shady Point would need to add a new combined cycle gas-fired generator to their existing generating capacity.

The UCG project for the full 300MW syngas plant is expected to cost between A$140m and A$150m, and the plant is expected to reach full production by mid 2015.