Earlier this week Carbon Energy co-owners Metex Resources announced the signing of a $A237,500 contract with the Australian Government in a bid to research and develop UCG projects in India.

The project initiates a memorandum of understanding signed between Carbon Energy and Indian government coal mining company Singareni Collieries to develop UCG projects in Andra Pradesh State, including a UCG site in the Godavari Valley.

Testing at a site in the Manugura coal field is of particular focus to the joint venture, where a deposit ranging from 5m to 15m in thickness has been found at depths between 300m and 600m over a 20 square kilometre area.

While the deposit is unsuitable for conventional mining methods, data collected suggests it is compatible for UCG mining.

The Carbon Energy joint venture was established to promote and commercialise the gasification of underground coal deposits, which involves injecting oxidants into the gas seam, effectively gasifying the coal which is then brought to the surface through boreholes.

The contract is the first implemented by the Australian Government in its $100 million commitment to the Asia Pacific Partnership on Climate Change.