2nd Apr 2015 07:06
LONDON (Alliance News) - Cluff Natural Resources Thursday said it has been awarded an underground coal gasification license in Scotland and been granted extensions to its licenses in Cumbria which will allow the company to consider an additional coal mining operation.
Underground coal gasification is the conversion of coal into a mixture of gases often referred to as syngas, which can be used for power generation or other purposes. The coal targeted is usually from old coal fields and the method is seen as a way of extracting otherwise uneconomical coal.
The Coal Authority awarded the Frances license in the Firth of Forth, Scotland, to Cluff Natural Resources, which the company said "enhances" its portfolio as it continues to try and make its nearby Kincardine licence a commercial project. The company is currently developing a production test project at Kincardine.
"We believe that underground coal gasification will help provide a cleaner energy, diversity of supply and energy security for the UK. The award of this additional UCG licence in the Firth of Forth, Scotland considerably bolsters our position in the region and clearly demonstrates our commitment to becoming a long-term supplier of syngas to industry," said Chairman and Chief Executive Algy Cluff.
The Coal Authority also awarded the company extensions to two of its licenses in Cumbria, England. Cluff Natural Resources said the extensions include conventional mining rights and will allow the company to consider a conventional coal mining operation as well as underground coal gasification, it said.
"In addition, we are delighted to announce the extension to our UCG licences in Cumbria for conventional coking coal mining. We recently announced a large coal exploration target with suitability for conventional coal mining as well as UCG, which adds an exciting new dimension and optionality to this licence area," said Cluff.
Cluff shares were untraded Thursday morning, last trading at 3.64 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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