Linc announces UCG deal in Africa

Linc Energy Ltd. is pursuing underground coal gasification in Africa.

The Australian independent with operations in Alaska recently announced a deal with Exxaro Resources Ltd. to develop deep coal reserves in Sub-Saharan Africa.

“This is a substantial strategic move by Linc Energy to add Africa to its global portfolio to roll-out UCG as an alternative and complementary energy solution,” Linc Energy CEO Peter Bond said in a prepared statement. “These developments, for the mutual benefit of the partners, shareholders and stakeholders in these developing regions, will bring efficient and reliable energy supply which is an essential part of the economic uplift of the local and regional communities.”

Underground coal gasification is a way to “create” natural gas inside coal deposits too deep to mine. The process involves injecting air and water into an ignited coal seam to synthesize the carbon and hydrogen into methane, the main component of natural gas.

Linc is currently using a new rotary-core rig built by Buffalo Custom Manufacturing to drill UCG test wells on the west side of Cook Inlet and in the Interior near Healy. The company intends to begin commercial development in Alaska within five years.

—Eric Lidji