The firm behind plans for an underground coal gasification development in the Firth of Forth has agreed a partnership with one of the world’s largest energy services companies
Cluff Natural Resources has signed a memorandum of understanding with Halliburton to collaborate on UCG projects in the UK.
CLNR’s main focus has been on the Kincardine project, which is estimated to contain 1.4 trillion cubic feet of natural gas-in-place, in the Firth of Forth.
It is set to be the UK’s first deep offshore UCG development, and is one of eight CLNR underground gasification projects across England, Scotland and Wales.
The company also has licences for gas projects in the Southern North Sea.
The initial agreement with Halliburton will be for a year, and it is intended that a separate joint collaboration deal will be formulated.
Algy Cluff, CLNR chief executive and chairman, said: “Halliburton is one of the world’s largest providers of products and services to the energy industry, and its expertise and capabilities offer our company the opportunity to accelerate the development and commercialisation of our UCG assets as well as our Southern North Sea gas assets.
“This relationship demonstrates our strategy of developing our business and seeking to create value through partnership.”
Halliburton will, according to the MOU, help CLNR accelerate the development of its knowledge and capabilities and enhance the business relationship between the parties.
Veteran oil baron Algy Cluff, 74, insists that underground coal gasification is entirely different from hydraulic fracturing, or ‘fracking’ the means of extracting underground shale gas which is the subject of a Scottish Government moratorium.
UCG involves drilling a 12-inch vertical borehole into a coal seam below the seabed, flushing it with oxygen and igniting it with a burner.
Gasification in a limited oxygen environment would produce Syngas, a mixture of methane, hydrogen, carbon monoxide and carbon dioxide which can be used as a feedstock by the petrochemicals industry.
The Department for Trade and Industry carried out a lengthy study of UCG and its application, from which Andrew Nunn, Cluff’s chief operating officer, drew confidence.
He said it concluded there would be minimal adverse environmental effects with careful site selection, process control and post-gasification site management.
UCG is largely untested, however, and has never been attempted offshore.
Cluff is carrying out a full environmental impact assessment to support a planning application for the construction and operation of a small-scale production test.
Politicians in Fife are uneasy about the project, however, and are calling for a public health impact study.
The region is also affected by proposals by Grangemouth refinery owners Ineos for a major fracking operation across central, with concerns Fife is being used as a guinea pig for controversial energy projects.
The Cluff project is not covered by the moratorium announced last month, as a spokesperson for the Scottish Government explained.
“The moratorium announced last month was specifically about onshore unconventional oil and gas developments, including fracking, and came further to confirmation by the UK Government that it would devolve onshore licensing.
“With respect to offshore coal gasification developments, we will continue to take a careful, evidence-based approach to the development of new energy technologies.
“Many of the relevant powers relating to underground coal gasification remain with Westminster, although the technology has not been used commercially in Scotland. The Scottish Government will work with Sepa and all relevant regulators to ensure we have the appropriate controls and regulations to protect the environment.”