Bloodwood Creek Underground Coal Gasification Project
Carbon Energy (Operations) Pty Ltd (CEOps), a wholly owned subsidiary of Carbon Energy Limited (CEL), is seeking approval to develop a large-scale syngas production facility using underground coal gasification (UCG) at the Bloodwood Creek project site, approximately 40 km west of Dalby in southern Queensland. The project involves the use of proprietary technology owned by CEL.
The project would consume approximately two million tonnes of coal a year over an expected 30 year period. The UCG site would cover an area of about 1km2 on MLA 50253.
CEOps is currently operating a pilot UCG trial at Bloodwood Creek that is successfully producing syngas. Syngas is a mixture of carbon monoxide, carbon dioxide, hydrogen, methane and ethene (ethylene). Different end uses of the syngas require different proportions of the component gases. The pilot trial has demonstrated that the technology allows the gasification process to vary the content of the component gases of the syngas. Currently, syngas from the pilot trial is being used to generate approximately 5MW of electricity.
The proponent proposes to use a portion of the syngas produced by the larger scale project as fuel for a 30MW power generator to be located on the mining lease. The balance of the syngas may be used as a feedstock for a number of other uses, such as the production of ammonia, fertiliser, explosives, or methanol, and the supply of methane to a liquid natural gas facility.
The current EIS will address the proposed larger scale production of syngas as well as 30MW of power generation, but not the other potential uses or markets for syngas.
The project would involve separation of carbon dioxide to improve the quality of the syngas. The EIS will assess the potential for sequestration (locking-up) of the carbon dioxide.
The proponent applied for, and has been granted, approval to prepare a voluntary environmental impact statement (EIS) for the project.
EIS process
In accordance with section 41 of the Environmental Protection Act 1994, Carbon Energy (Operations) Pty Ltd has prepared and submitted to the chief executive of the Department of Environment and Resource Management (DERM) a draft terms of reference (ToR) for carrying out an EIS for the proposal.
The process for the assessment of this project is as follows:

The final terms of reference for the EIS were issued to the proponent on 10 May 2010. The proponent will now prepare the draft EIS. The EIS will be available for public review and DERM’s chief executive will invite written submissions from any person in relation to the draft EIS in due course. In the meantime, copies of currently available public documents can be obtained by accessing the links below:
- Final terms of reference (PDF, 337K)*
- Initial advice statement describing the project (PDF, 3.8M)*
- Public notice (s46 EP Act) (PDF, 78K)*
For further information about the EIS process for the Bloodwood Creek Underground Coal Gasification Project, contact the EIS Co-ordinator.
* Requires Adobe Reader
Last updated 1 April 2010
