Cluff Natural Resources, the firm behind plans for an underground coal gasification (UCG) development in the Firth of Forth, has found a potentially large source of coking coal near the Solway Firth, Cumbria.
Consultants Wardell Armstrong indicated the licences have an exploration target of 384 million to 640m tonnes in seven coal seams.
UCG potential is likely to be further offshore, and chairman Algy Cluff is considering amending the licence to incorporate the conventional coking coal potential and UCG.
Mr Cluff said: “This significant exploration target adds an exciting new dimension to our portfolio of UK energy assets.
“The global outlook for metallurgical and coking coal is predicted to remain steady, with substantial upside potential on the back of decreasing supply and increased steel demand as the global economy continues to recover.
“This is reflected in continued interest and exploration investment in delineating new coking coal resources in the UK, including the adjacent acreage currently being explored by West Cumbria Mining.
“Significant UCG potential is also likely to exist in the seaward parts of the licence area and will be appraised in conjunction with future drilling programmes.”
Last week Cluff Natural Resources 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, estimated to contain 1.4 trillion ft3 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 UCG potential in the Solway Firth is understood to be less than the Kincardine and Point of Ayr licences, but highlights the very large volume of coal Cluff controls on its UK acreage.