CARBON Energy is now a step closer to producing its first electricity from coal using its underground coal gasification (UCG) technology.
Carbon Energy says it is currently developing a 5MW power station at Bloodwood Creek in Queensland's Surat Basin to extract coal from the ground before transforming it into a combustible gas for power generation.
Carbon Energy claims the new technology will produce fewer emissions because it avoids the need to dig up coal, reducing the company’s carbon footprint.
Chief executive Andrew Dash says the power station is the first of its kind and is expected to be completed by the end of the year.
"It will be one of the first demonstration projects in Australia for low-emission coal generation," he says.
According to Carbon Energy, the technology is scalable and the company has entered its second phase of its carbon reduction plan with aims to build a 20MW station.
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