US firm says Sumatra coal-to-gas pilot test successful
Tuesday, March 27 2012 - 01:21 PM WIB
US little-known firm Next Fuel, Inc announced on Tuesday that its initial coal-to-gas (CTG) pilot test, which was conducted in southern Sumatra was recently completed.
?All parties involved were very encouraged by the positive results of the test,? claimed the company.
Six wells were drilled and completed into a virgin lignite seam with no prior gas production or reserves. Within six weeks, all of the wells were producing newly created biogenic methane gas at a measurable rate, the company said.
?To our knowledge, the completion of this field pilot test has positioned Next Fuel, Inc. as the first company in the world to announce the successful implementation of biological CTG technology in a virgin coal seam with no gas production history?.
The company's patent-pending CTG technology converts the dirtiest fossil fuel, low-grade coal or lignite, into clean-burning natural gas through the introduction of nutrients, via a low-pressure pumping system, to the wide range of microorganisms that naturally exist in coal deposits. The proprietary nutrients stimulate the microorganisms, which in turn consume the carbon-containing compounds in the coal and "exhale" biogenic natural gas as a byproduct.
Next Fuel also announced that it has entered into a Development and Licensing agreement with undisclosed privately owned company in Indonesia, which grants, for a period of ten years, rights to use the company's CTG technology within the license territory in southern Sumatra. Next Fuel will receive a 10% gross royalty on gas produced from all wells drilled by the partner in the license territory, based upon gas prices that are indexed to the local market in Sumatra.
"Results from the Indonesian pilot project met our expectations and those of our partner in Indonesia, and the execution of a comprehensive Development and Licensing agreement represents the achievement of an important milestone in our quest to commercialize our CTG technology on a global scale," stated Bob Craig, Chief Executive Officer of Next Fuel.
Editing by David Mustakim