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Cape Town – Eskom intends on investing R1 billion over the next five years in underground coal gasification (UCG) research projects, according to the Sunday Times. UCG is a mining method of converting in-situ coal reserves into gas, which Eskom plans to use as a feedstock for power stations, the publication reported.
The technology, according to Eskom, could more than double the current recoverable coal reserves and has huge potential to produce economic, social and environmental returns.
Steve Lennon, Eskom group executive of sustainability said the parastatal had been looking at UCG for over a decade.
“What we’ve seen as we’ve undertaken this research is that UCG has great potential in South Africa in several areas,” he was quoted to have said.
“It will allow us to open up coal reserves that are not currently mineable,” Lennon said.
Sasol New Energy and Eskom have signed a research agreement to jointly explore the full value chain of UCG technology development, the state-run firm announced last Monday.
Eskom generates approximately 95 percent of the electricity used in South Africa and approximately 45 percent of the electricity used in Africa.
There is a growing role for gas in the country, given the deficit in access to electricity, Eskom CEO Brian Dames said in March. – Fin24
Online Reporter