AN independent scientific panel appointed by the Newman government has recommended against commercialising the underground coal gasification (UCG) industry in Queensland until effective remediation of underground chambers can be established.
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The Minister for Natural Resources and Mines, Andrew Cripps, released the report on Monday and said the three- member panel, led by the University of Queensland's Dr Chris Moran, considered the technical and environmental aspects of two separate trial UCG projects being conducted by Linc Energy and Carbon Energy in southern Queensland.
UCG is the process by which coal is converted to gases and liquids in-situ via controlled partial combustion.
The resultant product, known as syngas, can be used as either a fuel or as feedstock for a range of chemical products.
Mr Cripps said the report assisted the government in making an informed, science-based decision on the potential for a commercial UCG industry to develop in Queensland.
"The report suggests Queensland is possibly leading the world developing UCG technology and both companies have shown they can successfully commission and operate their technology," he said.
"However, neither has yet demonstrated effective remediation of underground chambers."
"Like all emerging industries, the UCG industry must demonstrate it can be conducted in a manner that is environmentally safe, and that it can adequately coexist with other resource activities."
The ISP recommended the Queensland Government permit Carbon Energy and Linc Energy to continue their current pilot trials.
It also recommended that a planning and action process be established to demonstrate successful 'decommissioning' of the underground cavities used as part of the UCG process.
The panel also recommended that until decommissioning could be demonstrated, no commercial UCG facility should be commenced.
Far from deterred, Linc Energy CEO Peter Bond said the report put commercialisation of UCG back on the agenda in Queensland.
"UCG is already blossoming as an emerging energy platform in various countries around the world," he said.
"It has 50 years of commercial operating experience in Uzbekistan and over 12 years in Australia at the Chinchilla site.
"We have already begun preparations for decommissioning of a gasifier at Chinchilla and see that as a very straightforward process," he said.
"We also continue to work proactively with our commercial partners and regulators internationally in defining a robust and transparent remediation method."
AgForce projects manager, Sue Dillion, said AgForce had serious concerns about the UCG industry.
She said AgForce welcomed the recommendation against commercialisation of the industry.
"The concerns are in relation to water, chemical use and interference underground, which could have adverse implications," she said.
"There absolutely needs to be further investment in research and securing outcomes of the industry and also in ensuring very strict guidelines are in place if the government wishes to proceed."
