Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Coal gas developer Wildhorse Energy Limited (LSE:WHE) (ASX:WHE) has signed a Cooperation Agreement with the Government of Hungary to map the “legislative and regulatory framework” in connection with the development of underground coal gasification (UCG) project in the country, the company announced earlier today.
The project is the first in Hungary and the Central and Eastern Europe region that both parties believe “could provide Hungary with an opportunity to develop its extensive stranded coal reserves and potentially provide the blue print for UCG project development across Europe”.
“This pivotal agreement, which I believe demonstrates strong foresight from the Hungarian government, is a testament to the compelling case for developing UCG projects to facilitate energy security in Central and Eastern Europe, and represents a major milestone for the UCG industry as a whole,” said Wildhorse Energy’s Managing Director, Matt Swinney.
Wildhorse Energy has been developing the UCG technology in Hungary for six years, holding three UGC exploration areas, including the pioneer Mecsek Hills UCG Project.
Towards Energy Security
The underground coal gasification process or UCG converts underground coal seams into synthesis gas or syngas without the need of mining, the heart of Wildhorse Energy’s business strategy. The syngas produced can be used as a “feedstock” to power stations and produce electricity.
The technology is significant for Hungary and other Central and Eastern European nations, which rely heavily on Russian imports of natural gas to light up their industries and residential communities.
“The application of UCG has the potential to provide the country with a major new source of domestic fuel, which could revolutionise Hungary and Central and Eastern Europe’s energy demand/supply fundamentals,” stated Pal Kovacs, Hungary’s Minister of State for Climate and Energy Affairs.
“The Ministry for Energy is committed to decreasing the country’s dependence on external energy sources utilising currently inaccessible, domestic energy sources. It therefore looks forward to this cooperation, which aims to provide an understanding of UCG technology.”
Wildhorse has already identified a JORC-compliant inferred resource of about 184.5 million tonnes of coal at the Mecsek Hills UCG Project, which forms part of the 1-1.25 billion tonnes of coal exploration target.
The agreement announced today reinforced Wildhorse Energy’s focus on becoming a major supplier of fuel gas in Hungary and the Central and Eastern Europe.
Company Spotlight
Wildhorse Energy Limited is an emerging energy company focussed on the application of UCG technology to produce fuel to provide electricity.
Hungary-based, the company trades on both the Australian Stock Exchange and the Alternative Investment Market of the London Stock Exchange.
Shares were up 10.8% to 5.125 pence at 1:30 PM GMT.
