Underground Coal to Liquids

What is UCTL^TM?

Click here to view Sky News interview with Rohan Gillespie.

UCTL^TM is a new process invention that occurs within the underground coal seam ("in situ"), whereby low rank coals are liquefied into crude oil substitute product at 300⁰C. A substantive heat by-product is returned to the surface potentially creating further commercial applications such as electricity generation.

The process has not been attempted previously and is subject to two patent applications (PCT) lodged by the Inventor, Mr Peter O'Dowd. One patent covers the overall UCTL^TM process and the second patent covers the delivery of Water With  Supercritical Properties ("WSP") which is water with high kinetic energy delivered using a jet pump and purpose designed nozzle.

The liquid hydrocarbons and steam produced from the process are extracted from the below ground coal seam with conventional oil field technology that is inexpensive and readily available.

A technical due diligence review by leading process consultants AMEC (UK) has concluded that the UCTL^TM process is an interesting and innovative process which, if successful, is highly likely to offer significant advantages over competing coal-to-oil technologies.

How does UCTL^TM work?

Access is gained to the coal seam via existing or new wells drilled in a conventional manner. Small quantities of the non-toxic initiation chemical and catalysts are introduced into the coal seam that creates a heat reaction, increasing the temperature to over 300°C. This reaction occurs in a confined location within the immediate vicinity of the well. This has been successfully bench tested in a laboratory environment and confirmation of its application in an underground environment will be a component of the Pilot Test.

As the temperatures approaches 300°C the initiation chemicals are gradually replaced with WSP and the liquefaction of the coal continues. The water content and impurities of brown / coal lignite contribute towards the liquefaction process. The effectiveness of the WSP can be up to approximately 200m from the nozzle (to be confirmed by Pilot Test).

Conversion of coal to oil using supercritical water is a proven process. Supercritical water is water at high pressure and high temperature. WSP replicates supercritical properties by substituting high pressure with high velocity (kinetic energy). Liquefaction products are then extracted from the reaction zone via the annulus of the well and collected and separated using conventional oil well equipment.

Pilot Plant Test to prove UCTL^TM Process

Regal Resources is building a Pilot Plant to test the UCTL^TM process commencing early 2010 and will run into 2011. The Pilot Plant is located at Oak Park, in Exploration Licence 4507 in the west of Melbourne.

Regal Resources owns 100% of Western Victoria Energy Pty Ltd, who is the owner of Exploration Licences 4507 & 4510, and Western Victoria Energy Pty Ltd owns 100% of Magma Oil Limited, the special purpose company formed to commercialise the world-wide rights of the UCTL^TM process.

The objectives of the Pilot Plant are to:

• Produce long-chain hydrocarbons that are suitable for processing within existing oil refineries without modification
• Verify the liquefaction of the coal produces predominantly liquids and minor amounts of gas and determine the composition of each product stream
• Compare UCTL^TM liquids / gas ratio to that produced under ideal conditions whereby 95% liquids and 5% gas can occur
• Verify and achievement of low percentage of CO₂ emissions as a result of liquefaction at low temperatures (300⁰ C) as compared to Underground Coal Gasification (UCG) that occurs at +1000⁰C which generates a higher proportion of CO₂ in the gas produced
• To verify the distance that WSP can travel from the nozzle/s inside the coal chamber and maintain its supercritical properties to create liquid hydrocarbons and gas