Date:18/11/2006 URL: http://www.thehindubusinessline.com/2006/11/18/stories/2006111801550300.htm

Back Singareni ties up with Australian co Carbon Energy

Our Bureau

To study potential for underground coal gasification, develop new tech

Both the companies will work to develop technology for coal gasification in seams located between 400 and 600 meters deep.

Hyderabad , Nov. 17

The state-owned Singareni Collieries Company Ltd has entered into a memorandum of understanding with Australian firm Carbon Energy Ltd (CEL) to investigate the potential for underground coal gasification in the Godavari Valley coal fields and develop new technologies.

The agreement was signed between the Chairman and Managing Director of SCCL, Mr S. Narsing Rao, and the Executive General Manager of Carbon Energy, Dr Cliff Mallett, here.

Coal gasification is a process that converts coal from a solid to a gaseous state. The gas that is created is very similar to natural gas and can be used to make chemicals, fertiliser, and/or electric power.

Cleanest of all coal-based electric power technologies, gasification has significantly lower levels of air emissions (including volatile mercury), solid wastes, and wastewater.

According to a statement from SCCL, the CEL is exclusive owner of Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia.

It commands rights and facilities for underground coal gasification technology, and manages projects globally and tenements in Australia.

As per the terms of the agreement, both the companies will work to develop technology for coal gasification in seams located between 400 and 600 meters deep. These cannot be mined through conventional technologies.

The Australian Government is part-funding through Asia-Pacific partnership under Clean Development and Climate. Consequently, SCCL would not incur any expenditure for these studies, except providing site, logistics and incidental expenditure.