Underground coal gasification

Underground coal gasification (UCG) has a small environmental footprint compared to many other forms of natural resource exploration, as shown by CIRI's test drilling pad above on the west side of Cook Inlet.

In 2010, CIRI teamed with Houston-based Laurus Energy Inc. to form Stone Horn Ridge LLC to develop an underground coal gasification (UCG) project on CIRI lands on the west side of Cook Inlet. The project will convert coal into synthesis gas (syngas) without mining. Syngas from the first phase of the project will likely be used to fuel a new 100-megawatt combined-cycle power plant to generate electricity for Southcentral Alaska.

Future phases of the project could upgrade syngas into synthetic natural gas for use in Southcentral Alaska or export. Syngas could also be used as feedstock for production of clean liquid fuels or other chemical products for in-state use or export.

CIRI has committed to using carbon capture and management technologies to minimize the UCG project’s carbon footprint. The Company completed the second of two phases of test drilling in 2011 to assess the coal resource and project site with generally positive results. CIRI also completed a shallow, high-resolution 2D seismic program on the site in early 2012. A significant amount of data has been compiled from these field programs and incorporated into a 3D geological model of the site to support site characterization and further project development. Commercial operations could start in 2015.

View the Stone Horn Ridge fact sheet or go online to www.stonehornridge.com for more information.