The UK's Coal Authority has awarded two licenses for underground coal gasification off the east coast of England to London-listed Europa Oil & Gas, the company said Wednesday.
The technique, little used in Europe to date, aims to recover up to 80% of the calorific value of the coal by a process of controlled combustion.
Europa said that when combined with carbon dioxide storage in the depleted coal seams, it can create an energy source which rivals nuclear power for low emissions, and has lower costs than conventional gas-fired power plants.
The new licenses offshore are close to existing licenses in the East Midlands already held by Europa.
Paul Barrett, managing director, said: "Whilst UCG is in its infancy in Europe, it has great potential to extract energy cleanly from vast resources of virgin coal still present in parts of the UK."
He said that the licenses were close to existing energy infrastructure,which would be key to economic recovery of the resource in the future.
The company estimates the energy resource from its new offshore areas at 6 billion barrels of oil equivalent, based on a 30% utilization rate for the coals.
The licenses have an initial three-year term. The 100 sq km Humber South license is situation along the coast near the Mablethorpe gas terminal. The 100 sq km Offshore Holderness license is along the coast next to the Aldbrough
gas storage facility and north of the Easington gas terminal.
Europa has 90% of each license, while its partner with 10% is Oxford Coal Consulting.
The technique, little used in Europe to date, aims to recover up to 80% of the calorific value of the coal by a process of controlled combustion.
Europa said that when combined with carbon dioxide storage in the depleted coal seams, it can create an energy source which rivals nuclear power for low emissions, and has lower costs than conventional gas-fired power plants.
The new licenses offshore are close to existing licenses in the East Midlands already held by Europa.
Paul Barrett, managing director, said: "Whilst UCG is in its infancy in Europe, it has great potential to extract energy cleanly from vast resources of virgin coal still present in parts of the UK."
He said that the licenses were close to existing energy infrastructure,which would be key to economic recovery of the resource in the future.
The company estimates the energy resource from its new offshore areas at 6 billion barrels of oil equivalent, based on a 30% utilization rate for the coals.
The licenses have an initial three-year term. The 100 sq km Humber South license is situation along the coast near the Mablethorpe gas terminal. The 100 sq km Offshore Holderness license is along the coast next to the Aldbrough
gas storage facility and north of the Easington gas terminal.
Europa has 90% of each license, while its partner with 10% is Oxford Coal Consulting.
