Linc Energy to Start Commercial UCG Operations in Tanzania by 2017

Australia based Linc Energy has entered into a Memorandum of Understanding (MOU) with the National Development Corporation (NDC) of Tanzania and Olympic Exploration for the development of a 400MW underground coal gasification (UCG) to power operation in Tanzania, the company said on Wednesday.

“The MOU specifies a program of coal exploration and power plant development, which subject to project permitting and commercial term development, would see the commercialisation of a 400MW power plant in the South West of Tanzania in late 2017,” Linc Energy said.

NDC would be instrumental in obtaining necessary permits and approvals for the project, while also assisting with the securing of land access, utilities and the development of a long-term Power Purchase Agreement (PPA). Olympic Exploration has access to vast coal resources in Tanzania and will be working with Linc Energy on all of the necessary exploration, feasibility studies, finance raising, project engineering, delivery and operation on behalf of a future joint venture between the parties.