The company has provided status report on the Company’s Pre-Commercial Demonstration facility at Leigh Creek. For upgrading a portion of its 2,964 2C PRMS resource, the progress brings LCK closer to beginning the process, to proven and probable reserve status. As per the company this revaluation process of company’s major asset will add significant value. On 10 October 2018 LCK initiated the gasifier. To develop through to full syngas production after initiation there is a gradual process for the gasifier typically taking weeks.
On the process of gasification development and ISG processes there is a big body of scientific research which indicates some common principles. In the early development phase of the gasifier, the knowledge bank will now increase through their learnings and during the future commercial stages of the project will assist with future gasifier initiations and developments. Deep coal combusts and slowly enlarges a gasification chamber after ISG initiation through a series of chemical reactions collectively known as combustion. Combustion was occurring at the Leigh Creek PCD, when LCK last provided a PCD status report.
The combustion chemical reactions of coal change to pyrolysis, the gasification chamber develops with increased heat producing a different combination of gases which occurs at temperatures in the range of 300 – 800 C. Containing H2, CO, CO2, CH4 and C2H4, or Syngas but in a different combination, the gas combination during this stage are similar to gasification gases. The Leigh Creek PCD is currently in the pyrolysis stage.
Conditions develop exponentially for stable gasification processes to be maintained, as the temperature and consequent size and configuration of the gasification chamber increase typically at temperatures above 1,000 C. To form Syngas, the primary chemical reactions during this phase relate to the communication of very hot gases interacting with the coal. The Company continues to work towards commercial gas (production) phase.
With an upgrade of a portion of LCK’s 2,964 2C PJ resource to reserve status in Q1 2019, LCK’s major objective is to achieve commercial Syngas flow and commencement of the PRMS upgrade process in Q4 2018. The company has now entered into an exciting and significant phase of development of our major asset at Leigh Creek. To becoming a major fertilizer manufacturer in the Australian and international markets LCK continues to achieve milestones on the way. As the PCD further develops and achieves Syngas at commercial flow rates the Company looks forward to providing further updates to the market.
Leigh Creek Energy Limited (ASX: LCK) traded flat at a market price of $0.135 as at December 04, 2018.
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