In assessing the coal deposit, the Queensland Methane Joint Venture will conduct a pilot burn using oxygen injection to demonstrate the production of UCG gas suitable for conversion to methane.
The joint venture partners would then develop a methane production facility and potentially an LNG production facility.
Under the agreement, the partners also have the option to include further coal deposit interests of either party into the project at a later time.
In addition, Cougar Energy has reported that their flagship 400 MW UCG power project at Kingroy remains on track for commissioning of the pilot (pre-production) plant at the end of February 2010.
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