AIM-listed Cluff published an independent report on Monday prepared by UK consultancy Biggar Economics claiming coal to gas technology would generate £12.8 billion ($A27.95 billion) gross value add over the long-term through the direct and indirect impact of domestic projects and export sales.
The report also claimed the underground coal gasification would create an average of more than 7500 jobs, peaking at about 11,900, and fuel a “new generation” of gas-fired power stations with a total capacity of about 3600 megawatts.
It would also serve to safeguard the UK’s chemicals sector, which is in a state of growth, if used for feedstock; and provide substantial supply chain and export opportunities for businesses across the UK.
The report also says Cluff’s UCG project at the Kincardine licence could generate a total of £603 million GVA and support an average of more than 350 jobs over the long-term.
Cluff CEO and chairman Algy Cluff said the report proved UCG had a “vital role” to play in the diversification of the UK’s energy mix and its long-term security.
This is especially prescient for the UK, which is clamouring to save its haemorrhaging North Sea and its stalling onshore shale gas industry, which is beset by activist and local council blockages despite vigorous government support.
Although several countries, including Australia, are exploring the potential of UCG technology, there is only one commercial scale UCG plant in the world – Linc Energy’s in Uzbekistan.
Thus if the UK managed to achieve large-scale commercial deployment of UCG technology, Biggar said the companies involved would gain a first-mover advantage in the global market.
This should create valuable export opportunities for UK-based companies involved in the UCG supply chain.
Further, Biggar said these exports could amount to about £558 million a year in sales in 30 years’ time, growing to £2.8 billion in the long-term.
However, Scottish Greens MP Alison Johnstone was unconvinced, warning that Cluff’s proposal to build the world’s first UCG project near Kincardine in Fife was “short-sighted and damaging”
Instead, she urged the Scottish government to focus on investing in renewables and a sustainable economy.
