Leigh Creek Energy In-Situ Gasification

Project Summary

Leigh Creek Energy has proposed to construct and operate an in-situ gasification demonstration plant at Leigh Creek, within the old mine site. This proposed demonstration plant will involve the establishment of a single gasifier chamber and associated above-ground infrastructure to produce synthesis gas (commonly referred to as syngas) for a short period of time (approximately 2-3 months), to test the syngas composition and process performance to enable consideration of potential commerciality.

For further information on the ISG process please see our Frequently Asked Questions Brochure on Underground Coal Gasification.

Statement of Environmental Objectives and Environmental Impact Report

All regulated activities conducted under the Petroleum and Geothermal Energy Act 2000 (PGE Act) must have an approved Statement of Environmental Objectives in place with which they comply, prepared on the basis of an Environmental Impact Report. Leigh Creek Energy has prepared an Environmental Impact Report and Draft Statement of Environmental Objectives in relation to its proposed In-situ gasification (otherwise known as UCG) project for assessment by the Energy Resources Division, in close consultation with relevant co-regulatory agencies.

Environmental Impact Report - Leigh Creek Energy, ISG Demonstration Plant, April 2018		Statement of Environmental Objectives - Leigh Creek Energy, ISG Demonstration Plant, April 2018
Download the Environmental Impact Report (PDF 17.1MB)		Download the Statement of Environmental Objectives (PDF 1.52MB)

For further information on the approvals process, including relevant stages and consultation requirements, please see Activity Approval Process.

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Consultation

If an activity is deemed by the Energy Resources Division in consultation with relevant co-regulatory agencies, to be of Medium Impact according to the criteria for classifying the level of environmental impact of regulated activities then public comment will be sought on the associated Environmental Impact Report and draft Statement of Environmental Objectives.

The Energy Resources Division on the 16 January 2018 invited public comment on the proposed Leigh Creek Energy In-situ gasification Environmental Impact Report and draft Statement of Environmental Objectives. As part of this process the Energy Resources Division also consulted with targeted stakeholders through email correspondence, presentations to the Adnyamathanha Traditional Lands Association Native Title Body (ATLA) and the Northern Flinders NRM group and a community drop in session at Copley.

This formal public consultation period closed on the 28 February 2018.

Submissions have now closed

A number of issues were raised by internal government and the wider public in a total of 102 submissions, including:

• potential contamination of ground water and impacts to local air quality;
• matters relating to Aboriginal heritage in the Leigh Creek Area; and
• concerns regarding the Linc Energy UCG project at Chinchilla in Queensland and the alleged failure to comply with the Queensland Environmental Protection Act 1994.

All submissions received during this process were provided to Leigh Creek Energy to adequately address to the Energy Resource Division’s, and its co-regulators, satisfaction. Leigh Creek Energy’s responses to these submissions can be found within Section 7.4 and Appendix E and F of their EIR document.

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Approvals

All prospective operators, prior to any on-ground activities, must adhere to the three stage approvals process under the Petroleum and Geothermal Energy Act 2000, which is outlined in the Guide to the licensing and approvals process for exploration, retention and production activities flowchart.

Production Suspension

On 5 November 2018, as detailed in the letter below, Leigh Creek Energy requested from the Department for Energy and Mining, Energy Resources Division (DEM-ERD) a temporary suspension for up to 4 weeks for its 90 day UCG trial for the purpose of re-igniting the gasifier. LCK have advised that several options to re-ignite the gasifier will be considered, with the first option already provided to DEM-ERD for consideration as part of the company’s approved Management of Change process.

In response, on 7 November 2018 as detailed in the DEM-ERD letter below, approval was granted to suspend the trial conditional to at the expiration of the suspension (a maximum of up to 4 weeks to 5 December 2018), the 3-month UCG trial period will recommence.

Leigh Creek Request for 90 day Gasifier Trial Suspension (PDF 423 KB)

Department for Energy and Mining Suspension Approval (PDF 495 KB)

Date Posted - Wednesday, 7th November 2018

DEM’s decision to grant Leigh Creek Energy a temporary suspension for up to 4 weeks for its 90 day UCG trial was informed and supported by independent expert, Dr Clifford Mallet, as outlined in Part 3 of his review of the Leigh Creek ISG pre-commercial demonstration facility.

Production Extension

On 1 February 2019, as detailed in the letter below, Leigh Creek Energy requested from DEM-ERD a 3-month extension of the production period as approved under Section 27(3) of the Petroleum and Geothermal Energy Act 2000. Leigh Creek Energy have outlined within their request that the Pre-Commercial Demonstration (PCD) is still in its commissioning (or “ramp up”) stage and has yet to sustain full flow rate gasification and production of syngas as defined in the relevant Environmental Impact Report (EIR).

Leigh Creek Energy are investigating options to progress the development of the gasifier to commence their operational phase and test plan regime. Only after full, stabilised flow rate gasification is achieved will Leigh Creek Energy be able to commence operation of its pre-commercial demonstration (PCD) trial to evaluate the technical and environmental feasibility of In-Situ Gasification (ISG) within the Telford Basin.

In response, on 6 February 2019 as detailed in the below DEM-ERD letter, approval was granted to extend the original 3-month production period for three months until 7 May 2019.

Leigh Creek Request for Production Extension (PDF 120 KB)

Department for Energy and Mining Extension Approval (PDF 90 KB)

Date Posted - Thursday, 7th February 2019

Monitoring Plans

Leigh Creek Energy were required to develop to the satisfaction of the Energy Resource Division and other co-regulators a Groundwater and Soil Vapour Monitoring Plan and an Air Quality Monitoring Plan. This was a requirement of the Statements of Environmental Objectives and is key in measuring the level of compliance with the Statement of Environmental Objectives and relevant assessment criteria. Links to the relevant monitoring plans can be found below.

Groundwater and Soil Vapour Monitoring Plan (PDF 12.1 MB)

Air Quality Monitoring Plan (PDF 1.3 MB)

Independent Assessment (Stage 3)

The Energy Resources Division has engaged Dr Cliff Mallett, former CSIRO UCG research scientist to provide independent advice and confirmation of the site suitability, fitness for purpose of the proposed above and below ground infrastructure and the Groundwater and Soil Vapour Monitoring Plan to ensure the they adhere to good industry practice. Dr Mallett will be retained as the Governments independent advisor throughout the gasification trial and to verify the de-commissioning phase of the gasifier post completion of the trial.

Links to Dr Mallets' reviews are provided below.

A Review of the Leigh Creek Energy ISG Pre-Commercial Demonstration Facility Part 1: Initial Assessment of Detailed Engineering and Environmental Monitoring Plans (PDF 346 KB)

A Review of the Leigh Creek Energy ISG Pre-Commercial Demonstration Facility Part 2: Comments on Groundwater and Soil Vapour Monitoring Plan, Revision 2, 2nd August 2018 (PDF 89 KB)

A Review of the Leigh Creek Energy ISG Pre-Commercial Demonstration Facility Part 3: Status November 2018, 26th November 2018 (PDF 418 KB)

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Demonstration Plant Gasification Process Monitoring

Leigh Creek Energy is required to undertake considerable monitoring both on-site and in surrounding areas to ensure its 2-3 month underground coal gasification demonstration plant is compliant with approvals and is operating safely in relation to people and the environment.

The following facts sheet is intended to provide the public with easily accessible information and highlight key aspects of the monitoring program for the Leigh Creek Energy underground coal gasification process.

The follow monitoring data is presented in accordance with the diagram below, which represents an illustration of the three monitoring zones – green (greater than 100 metre radius), amber (~15-100 metre radius) and red (~0-15 metre radius) around the gasifier – which align with expected monitoring program observations. Further information on the monitoring programs for the Leigh Creek UCG Demonstration Plant Gasification Process is provided in the guide above.

Green zone (area outside of 100 metre buffer zone including the shallow main series overburden):- Updated 31 January 2019
From the date of ignition the sensors in the shallow overburden rock between 96 to 103 metres depth have shown no change in pressure (blue curve) and temperature (orange curve). No pressure and temperature variance from baseline is expected in this zone.

Amber zone (up to 100 metre buffer zone around the gasifier chamber including the main series overburden):- Updated 31 January 2019
From the date of ignition the sensors in the overburden rock between 415 to 493 metres depth have shown a minor decrease in pressure (blue curve) and no change in temperature (orange curve). Some pressure and temperature variance from baseline is expected in this zone given it is within 100 metre from gasifier.

Red zone (area including the gasifier chamber and surrounding main series coal seam):- Updated 31 January 2019
From the date of air injection and subsequent ignition, the sensors surrounding the gasifier chamber in the coal seam between 485 to 512 metres depth have shown a decrease in pressure (blue curve) and no change in temperature (orange curve). The decrease in pressure is mainly due to air circulation and depressurising between inlet and outlet wells, creating a pressure sink in the gasifier chamber. No change has been observed in temperature sensors approximately 15 metres from the ignition point in the coal seam. Coal has very low thermal conductivity and it is unlikely that any significant change in temperature will be seen in the sensors in the coal seam during the PCD period.

Furthermore, the gasifier operating pressure (purple curve) is below baseline hydrostatic pressure at approximately 5,000 kPa and also below surrounding pressure after ignition, indicating there is inward flow towards the gasifier and no loss of containment.

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Frequently Asked Questions

The following Frequently Asked Questions aims to provide the public with easily accessible and comprehensive responses to a range of questions asked by the public in relation to underground coal gasification. If you have a relevant questions not answered in the following Frequently Asked Questions, please contact the Energy Resources Division.

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Research Projects

As part of informing the regulatory process, Energy Resources Division commissions independent assessments and reviews, and constantly monitors national and international research to ensure decision-making relies on scientific, professional and appropriate assessment of risk.

Links to key research projects and assessments relevant to in-situ gasification (commonly referred to as underground coal gasification) are provided below:

Key Findings of the Geomechanical Assessment of the proposed Leigh Creek UCG demonstration plant (PDF 140KB)		Ikon Science Geomechanical Model, Leigh Creek South Australia  (PDF 4.9MB)

LLNL Underground Coal Gasification Review (PDF 5.9MB)

LLNL Prevention of Groundwater Contamination from Underground Coal Gasification (PDF 7MB)

LLNL Underground Coal Gasification: An Overview of Groundwater Contamination Hazards and Mitigation Strategies (PDF 7.4MB)

Independent Scientific Panel Report on Underground Coal Gasification Pilot Trials (PDF 359KB)

CSIRO Underground Coal Gasification: Evaluating Environmental Barriers (PDF 3.6MB)

Underground coal gasification - Part 1: Field demonstrations and process performance (PDF 8.2MB)

Field Investigation and Geotechnical Studies for UCG Feasibility Study Leigh Creek (PDF 2.6MB)

Underground Gasification of Inaccessible Leigh Creek Coal Measures (PDF 4.9MB)

In-situ Gasification of Coal for Electricity, Syngas and Synfuels (PDF 519KB)

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Presentations

Presentations by the Energy Resources Division in relation to underground coal gasification and/or the proposed Leigh Creek Energy in-situ gasification project are provided below.

Please note: these presentations are intended to provide general information on the Energy Resources Division, its role and regulatory functions, and proposed or current licensee projects under the Petroleum and Geothermal Energy Act 2000 and associated regulations. Presentations should be considered in the context of the relevant legislation.

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