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Cougar Energy's Dr Len Walker Discusses Underground Coal Gasification

Cougar Energy's (ASX: CXY) executive director, Dr Len Walker, presented the company's Asian Underground Coal Gasification strategy to the conference and outlined its rapidly developing plans to commercialise UCG in Indonesia with a possible project expected to be announced some time in 2013.

Dr Walker, who was introduced as a grandfather of UCG internationally, set out Cougar Energy's expertise in UCG and its progress with partner Medco Energi, one of Indonesia's leading energy companies listed on the Indonesian Stock Exchange.

Dr Walker confirmed in detail that UCG met the major objectives of the Indonesian Government's coal resource development policy. He outlined the essential reasons for this conclusion which were:

- UCG uses stranded coal of little current value because it is too deep to mine economically, or of low grade;

- The synthetic gas (syngas) produced by the UCG process is best used domestically, either for power generation, or upgrading to value-added products such as natural gas or fertilizer;

- UCG provides a low cost syngas as a fuel source - typically about half the cost of natural gas;

- UCG is a proven technology, based on long-term experience in the Former Soviet Union combined with a wide range of recent demonstrations in Australia, South Africa and New Zealand;

- Cougar Energy has developed a staged commercialisation strategy for Indonesia, starting with a small power plant (approximately 30MW), with a potential expansion to 200MW, to be followed by syngas conversion for value added products; and

- Cougar Energy is targeting a potential announcement of its first commercial project in Indonesia in 2013.

Cougar said the audience of roughly 100 industry professionals expressed a strong interest in the technology through a range of questions, including the key issue of the need for appropriate legislation. This interest gives the company encouragement for the rapid development of UCG technology in Indonesia.

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