Queensland Bans Underground Coal Gasification

The Queensland government on Monday said it has moved to ban underground coal gasification (UGC) because of its environmental impact.

State Development Minister and Minister for Natural Resources and Mines (DNRM) Anthony Lynham announced the immediate ban and committed to introducing a legislated ban before the end of the year.

“We have looked at the evidence from the pilot-operation of UCG and we’ve considered the compatibility of the current technologies with Queensland’s environment and our economic needs. The potential risks to Queensland’s environment and our valuable agricultural industries far outweigh any potential economic benefits,” he said. “The ban applies immediately as government policy, and I will introduce legislation to the Parliament by the end of the year to make it law.”

Brisbane based Carbon Energy which has invested $150 million in developing the UCG technology responded to the decision by stating that “this new position has come as a surprise to the company who only recently had discussions with several ministerial staff including staff from the DNRM regarding the next steps in relation to the successful completion of the Independent Scientific Panel (ISP) technology process.”

This decision is also inconsistent with the Mineral Development Licence Renewal granted in December 2015 which was approved following the company submitted its Decommissioning Report and Rehabilitation Plan, Carbon said.

The company stated it is seeking further information in regard to the announcement before making a formal response.

Underground coal gasification involves converting coal to a synthesised gas by burning coal underground.