Carbon Energy Limited - Environment Evaluation Request

16.07.2010  |  ABN Newswire

11:50 AEST July 16, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Brisbane, Australia (ABN Newswire) - Carbon Energy Limited (ASX: CNX) (PINK:CNXAF) advised today that the Company will continue to work with the Queensland Department of Environment and Resource Management (DERM) and cooperate fully with any request for an Environmental Evaluation of its Bloodwood Creek (near Dalby) Underground Coal Gasification (UCG) trial plant.

DERM has indicated that it may make such a request as a 'precautionary measure' in light of its concerns in relation to Cougar Energy that uses its own alternative UCG technology.

Carbon Energy has complete confidence in the CSIRO-researched technology used at Bloodwood Creek and in particular in the integrity of the environmental systems and processes used at the plant. Carbon Energy is in constant contact with Officers from DERM, who have visited our site on a regular basis.

Carbon Energy undertakes rigorous testing of ground water on a continuous basis and follows strict environmental guidelines, as required by all extractive mining process. The Company has 20 watering monitoring wells with in a square kilometre of our production area and are in regular contact with Department representatives who visited our site as recently as last week.

Carbon Energy released an interim report, endorsed by an independent third party (over 200 pages) to Government within the last year covering all aspects of our commercial trial, including matters relating the protection of the environment and in particular the integrity of the water table.

We wish to clarify the Department's comment that 'Carbon Energy failed to report a discharge of contaminated water from their plant to a nearby creek in November 2009'. There was a small amount of process water runoff into a dry creek bed which was immediately cleaned up by our team on site. A report was compiled but not lodged within the correct time period. The water released was surface water and was in no way connected to the water table.

The company will continue to work cooperatively with the appropriate authorities as it continues to build its energy business in Queensland.


About Carbon Energy Limited:

Carbon Energy's purpose is to produce clean energy and chemicals feedstock from Underground Coal Gasification (UCG) syngas.

Carbon Energy's unique approach to UCG and syngas production produces a low cost option for capturing CO2 making it a leader in clean coal technology.

Carbon Energy's ambition is for syngas to become the preferred feedstock for producing clean coal power stations, an alternative to oil-based fuel, agribusiness products (fertilisers and explosives), polyolefin products (such as plastics) and allowing for economic carbon capture.

Carbon Energy's technological advantage comes from its association with CSIRO including world class geotechnical, hydrological and gasification modelling capabilities.

Located at the hub of the Surat Basin's energy infrastructure, Carbon Energy's energy resources are perfectly positioned to provide the basis for future energy, industrial and agricultural chemicals, and liquid fuels for export and to the growing local industrial hub.



Contact:

Andrew Dash
Managing Director
Carbon Energy Limited
Tel: +61-7-3337-9944
www.carbonenergy.com.au