Leigh Creek Energy (LCK) has extracted commercial quantities of synthetic gas (syngas) at its former Leigh Creek coal mine site for the first time.
This milestone achievement provides the company with the data and evidence it needs to have a portion of its ‘resource’ status coal deposit, upgraded to a gas ‘reserve’.
Positioned 550 kilometres north of Adelaide, the upgraded status will enable LCK to access South Australia’s largest gas resource for commercial development outside the Cooper Basin.
The production success is also estimated to make LCK the first company to successfully operate in-situ gasification technology in the state.
LCK Managing Director Phil Staveley said the milestones mark the successful completion of the Pre-Commercial Demonstration facility (PCD) operations at Leigh Creek.
“We have now achieved all our stated objectives for the PCD,” Mr Staveley said.
“These are significant milestones that unlock a large energy resource and captures key data that proves and validates this disruptive technology will be successful in a commercial application.”
Mr Staveley added that the data will enable LCK to quickly move towards upgrading a portion of its current resource to bankable reserves – a key step that is required for the company to progress to commercial operations.
Aside from this, LCK aims to produce syngas comprising carbon monoxide, methane, nitrogen and hydrogen, produce syngas at over 1 million cubic feet per day and provide key data and information for the development of a commercial project.