A pilot plant to prove that the underground coal to liquids (UCTL^TM) process can convert low rank brown coal/lignite into valuable commodities is set to be commissioned this month. Owner of the plant, Regal Resources’ first focus of the testing program will be on placing samples within the test vessel and exposing them to the UCTL high velocity/temperature water spray with supercritical properties. Other samples of Canadian oil sands are intended to be included in the surface testing program.

The site office, control panel and surface test vessel have been delivered and drilling works for the monitoring bores are completed. Completion of the remainder of site works and other commissioning activities are on time and schedule. It is anticipated that a significant amount of information will be gained from using the test vessel. While underway, pressure testing of the existing wells will be completed prior to transferring the UCTL trials process underground, which is expected to commence this month.

The aim is to produce crude oil that is acceptable to existing refineries, gas for domestic supply or power generation and heat for use in electricity generation. The pilot test aims to verify the production of long-chain hydrocarbons with low CO₂ emissions.