UCG and Greenhouse Gases

03 Environment Series
CORPORATE SERIES

This information sheet describes the greenhouse gas emissions associated with Underground Coal Gasification (UCG) and its end uses.

UCG SERIES GTL SERIES ENVIRONMENT SERIES

UCG and CO2

Like most processes that rely on combustion of fossil fuels to generate energy, UCG generates carbon dioxide (CO2). Importantly, UCG provides excellent opportunities for the removal and sequestration of CO2 because of the need to treat the gas and strip CO2 prior to use of the gas. The ultimate greenhouse gas (GHG) intensity of UCG depends on the coal properties, operating conditions, and the final product that is produced from syngas.

The GHG improvements take place because: 1. Coal is converted to a gas which, when combusted, generates electricity in a gas turbine. 2. The waste heat from the gas turbine is recovered and converted to steam to produce further electricity (steam turbine). 3. CO2 emissions are reduced by the preferential production and use of hydrogen as fuel in the combined cycle process (while also allowing for carbon capture and sequestration). The combination of the two turbines (termed combined cycle) has significant efficiency gains relative to a traditional steam turbine, which simply burns coal to produce steam. The steam is then vented, or at best, has its water recovered. Removal of CO2 and other impurities from the high pressure syngas stream (and also from later gas reactions) can be achieved more efficiently than from the flue gas in a conventional coal-fired plant (post combustion capture).

The UCG advantage

While UCG has all the benefits of clean coal IGCC, it also has significant advantages over both conventional coal-fired power stations and IGCC: Mining related emissions are eliminated (native methane release, combustion gases from mining equipment and coal processing). Coal transport related emissions are eliminated. When compared to IGCC, there is no need to construct and operate surface gasification facilities. These differences mean that UCG can generate electricity through combined cycle gas turbines with approximately 25 per cent lower GHG emissions than modern coal-fired power stations. The thermal efficiency of UCG syngas power generation is about 12 per cent better than conventional coal-fired power generation.

UCG for power generation

Reduction of GHGs from fossil fuel electricity generation plants is typically aimed at increasing the thermal efficiency of the plant and removing CO2 produced during the process to sequester it, or use it for enhanced oil recovery. Most clean coal projects are pursuing this by mining the coal and using surface gasification for combined cycle power generation (IGCC Integrated Gasification Combined Cycle).

1. assuming no sequestration by either technology.

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UCG and Greenhouse Gases

03 Environment Series

1000

800

3.0 2.5 2.0 400 1.5 1.0 200 0.5 0 0.0

600

Conv PF CO2 NOx

Super PF SOx

PFBC Particulates

IGCC

UCGIGCC

UCGIGCC seq.

NG CC

Air emissions from conventional fossil fuel power plants and UCGIGCC a,b

a BHP Biliton: http://ciss.com.au/ref/static/reports/public/acarp/acarp2.html b M.S. Binderman, C. Spero: UCG in Australia: Development to Date and Future Options. Report by Ergo Energy Technologies Inc., Linc Energy Ltd., and CS Energy Ltd., Brisbane, April 2002

UCG and Gas to Liquids

Due to the pioneering nature of the UCG to GTL technology, there is no published material about GHG life cycle emissions for FischerTropsch fuels (FT diesel) derived from UCG syngas. UCG syngas derived FT diesel has significant potential to outperform traditional crude derived diesel due to:

GTL plant gas treatment systems necessitate the removal of CO2 as a clean gas stream, meaning that carbon capture is integral to the process and not an add on. Sequestration of the captured CO2 would allow a significant proportion of emissions associated with upstream processing to be eliminated. This would not be possible for conventional diesel. Tailpipe GHG emissions of FT diesel are about 4 per cent lower than conventional diesel.

UCG has the potential to be one of the lowest GHG footprint coal-based technologies, generating around 25 per cent less CO2-e than modern coal-fired power stations.
BHP Newcastle Technology Centre, 2002

About Linc Energy

Linc Energy is an Australian energy company which listed on the Australian Securities Exchange (ASX) in May 2006 and the OTCQX in December 2007. Through the unique combination of Underground Coal Gasification (UCG) and conventional Fischer-Tropsch technology to produce Gas to Liquids (GTL), Linc Energy is developing a significant energy business based on the production of cleaner energy solutions for the future.

Related information information sheets Related sheets

Overview of Underground Coal UCG Explained Gasification Overview of Gas to Liquids Linc Carbon Solutions UCG and Greenhouse Gas Emissions UCG and Groundwater

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linc@lincenergy.com.au

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LINC-ENV-03.2

Important disclaimer: Information contained in this information sheet is provided for information only and Linc Energy makes no warranties as to its accuracy and completeness. Use of information contained in this information sheet is at the sole risk of the user. Linc Energy has made reasonable efforts to ensure that information in this information sheet is accurate at the time of its compilation, however there may be inadvertent errors or omissions for which Linc Energy apologises. To the extent permitted by law, Linc Energy accepts no responsibility for any loss, damage, cost or expense whatsoever incurred by any person as a result of any use of or error or omission in or relating to, the information contained in this information sheet.

NOx/ SOx/ Particulates, kg/MWh Net

Conv PF: Conventional pulverised fuel (coal) Super PF: Super critical pulverised fuel (coal) PFBC: Pressurised fluidised bed combustion IGCC: Integrated Gasification Combined Cycle NG: Natural Gas

4.0 3.5

CO2 kg/MWh Net