Linc signs MOU with BP

Brisbane, Australia-based Linc Energy Ltd. has signed a memorandum of understanding (MOU) with BP Australia Pty Ltd. to purchase up to 14,000 barrels a day of ultra-clean diesel and aviation fuel. The ultra-clean fuel will be produced at Linc’s Gasification site in Chincilla, Queensland. Linc Energy is currently completing the engineering design of a small pilot facility that will produce 10 barrels per day (bpd) in Chincilla. The purpose of the pilot is to demonstrate the integration of underground coal gasification (UCG) with gas-to-liquids (GTL) in the field. Upon successful completion of knowledge_base effort, Linc Energy will launch the feasibility engineering of the commercial plant, which will have a capacity of 20,000 bpd. The Chinchilla Project, which is one of Linc’s 14 coal tenements, has an estimated indicated coal resource of 16 million tons in the area immediately surrounding the UCG gasification field. (July 21, 2006)