Underground Coal to Liquids (UCTL) update – significant progress

uctl.jpgPreliminary results suggest that Stanford University has achieved the primary objective of coal liquefaction using specifications of UCTL. Qualitative demonstration of liquid hydrocarbon products being formed from coal using near-critical or supercritical water at conditions anticipated in UCTL. Quantitative demonstration expected from further testing on conversation of coal to liquid hydrocarbons and gas. Fast liquefaction times with Stanford’s continuous coal feed reactor is considered novel and could lead to further intellectual property. Potential application of UCTL to upgrade heavy hydrocarbons.

Regal Resources, via its 50% owned entity UCTL Pty, advises that it has received a Phase Two Interim Report from C&C Engineering with encouraging results indicating that liquid hydrocarbons can be produced from the UCTL process. C&C Engineering is a California based chemical engineering consultancy with a depth of expertise in coal gasification and liquefaction.

UCTL is a novel patent pending technology which aims to convert low rank brown coal, lignite or shale within the coal seam into liquid hydrocarbons and gas. UCTL consists of an innovative combination of existing technologies. The key conversion step is the hydrogenation of coal with super-critical water to produce liquid (oil and gas) hydrocarbons. The UCTL process, if proven, may offer advantages over competing coal-to-oil technologies, and has potential application to the significant world-wide deposits of coal and shales as a replacement for dwindling world oil reserves.

UCTL contracted with Stanford University for bench-scale proof-of-concept experimental work and extended C&C Engineering’s contract to provide continued consulting to UCTL Pty and technical support and guidance to Stanford. Stanford University has the only test facility globally that is capable of testing supercritical water conversion of coals on a continuous feed basis. C&C Engineering’s interim report presents progress made on testing and assessment of the UCTL concept. The final report has been delayed due to the rapid conversions of the test coal under continuous flowing conditions. Equipment modifications to better capture the faster than expected conversion of coal are planned and is now expected to be finalised in Q3 2012.

C&C Engineering’s preliminary review of results from the operation of Stanford’s supercritical flow through reactor suggests that Stanford University has achieved significant conversion of a reference coal to product fluids (gases and liquids). C&C Engineering have qualitative indications of liquefaction in experimental runs.

Stanford University has achieved this objective for at least one coal sample, a sub-bituminous sample of Wyoming’s Wyodak coal, a widely recognised reference coal. Stanford also plans to demonstrate liquefaction with lignite coals from Australia, including samples recovered from Oak Park, located within Regal’s EL 4507 tenement in Victoria.

The surprising aspect of the test results is the increase in liquefaction from shorter reaction times under UCTL parameters. Shortest test time possible with current equipment is five minutes in continuous flowing trials. Equipment modifications to shorten reaction times even further are recommended with a view to further increasing liquids production over gases in these rapid coal conversions. C&C Engineering commented that such rapid conversion of coals was not discovered in previous research due to limitations of alternative coal test equipment. The fast liquefaction times could lead to the generation of new intellectual property and other applications for the technology. Due to the design of the existing Stanford equipment, it is not possible to capture and measure the entire oil and gas production from testing. It is anticipated that this issue will be addressed in the near term via the modification of equipment so that the analytical carbon balance of the gas and liquids produced can be accurately measured.

The test results from Stanford University also suggests the potential to apply the UCTL process towards upgrading heavy bituminous oils and oils produced from tar sands.