A way to save Longannet’s future has been mapped out by oil and gas industry veteran Algy Cluff.
He believes his company’s Underground Coal Gasification (UCG) development project can secure its future and help meet the UK’s energy needs.
A study has found as much as 335 million tonnes of coal near Kincardine and Cluff Natural Resources is seeking permission to build the UK’s first deep offshore underground coal gasification project to extract it.
In the company’s annual report, Mr Cluff said: “I believe the closure of Longannet poses a threat to the rest of the UK too and should lead to an increasing recognition of the importance of coal gasification in the country’s energy equation.”
Mr Cluff said he was encouraged that a Scottish Government committee would this week report on how Scotland’s energy mix should be constructed.
“It is our corporate view that the future of Longannet (and Cockenzie and Grangemouth) can be secured by access to UCG,” he said.
He estimated there was enough UCG coal in the Kincardine licence area to fire a major power station for 25 years.
“The other two UCG licences in the Firth of Forth, which are larger, could provide energy security that Scotland requires without nuclear power,” he continued.
“The lower cost of UCG power generation would render export of electricity from Scotland again competitive.”
Electricity generation from UCG syngas is independent of world natural gas prices which he said were sure to rise in the longer term.
Another advantage is the output of a UCG production unit, unlike a conventional coal plant, was flexible and “an ideal match for the vagaries of renewable sources”.
The Scottish Government said it is taking a cautious, evidence-based approach to all issues relating to unconventional oil and gas, and UCG.
There is also significant environmental opposition to UCG.