The agreement represents the commencement of CCL’s strategy to develop multiple UCG projects in Canada with Stealth and other partners. Underground Coal Gasification (UCG) is a method of converting deep seam coals into a combustible gas used for power generation or as a feedstock for the manufacture of hydrogen, chemicals, or transportation fuels.
The gasification of coal in-situ is achieved by drilling boreholes into the coal and injecting either air or oxygen mixtures to achieve gasification in one step without the need to mine or extract coal. CCL will seek to combine UCG with carbon capture sequestration to produce a clean synthetic gas.
Derek Krivak, CEO of Stealth, said: “There is no question that we feel there is tremendous potential for the Cumberland basin and that it was a matter of applying the right technology to harness the resource. We believe that UCG technology has not only great applications for Nova Scotia but can play a bigger picture in Canada’s energy supply strategy.
“And we understand that the Province of Nova Scotia is currently examining the viability of such an industry for the Province from economic as well as environmental standpoints.”
Graham Chapman, chief operating officer of Clean Coal, said: “Recent developments in directional drilling technology and the growing need for new, plentiful and low-impact sources of energy means that underground coal gasification can play an important role in regional economic development and energy independence.
“We believe this is an exciting and commercially viable development which can bring significant long-term benefit to Nova Scotia.”
