SOURCE: Zeus Development Corp.

June 07, 2007 13:40 ET

Shiv Vani Signs MOU With Linc Energy for Indian UCG/GTL Projects; Houston Underground Coal Gasification Conference to Discuss This Development and Others

NEW DELHI, INDIA--(Marketwire - June 7, 2007) - Australia's Linc Energy Ltd. signed a memorandum of understanding (MOU) with Shiv Vani Oil & Gas Exploration Services Ltd. for setting up joint ventures to develop underground coal gasification (UCG) and gas to liquids (GTL) projects in India.

The immediate focus of the MOU is to ensure the joint venture gains and develops coal blocks that the Indian government is releasing later this year for the specific purpose of UCG development.

"India is one of the new economic powerhouses in the world and we see great application for our clean coal technology and for the generation of electricity linked to our UCG process," said Linc Energy Managing Director Peter Bond after signing the MOU on May 31. "The MOU will provide for the establishment of joint ventures between Linc Energy and Shiv Vani in the field of UCG with the aim of utilizing the UCG gas for power production, and in the medium term, coal to liquids diesel fuel production."

Shiv Vani Director Padam Singhee noted that the Indian company feels that the UCG technology developed at Chinchilla coalfields, Queensland, by Linc Energy is suitable for the untapped coal reserves in India.

Linc said that approximately 32,000 metric tons of coal was gasified with a high availability of product gas for 30 months from December 1999 through to mid-2002. The company's UCG-to-GTL demonstration plant at Chinchilla is scheduled to open in the third quarter 2007.

The Indian coal ministry has finalized the guidelines for allocation of coal and lignite blocks for the UCG projects. The government hopes to offer blocks for UCG and coal liquefaction by September 2007.

This development and others will be discussed June 21-22, 2007, in Houston at the Underground Coal Gasification Conference hosted by Zeus Development Corp. and SYNGAS Refiner Newsletter. View the full conference agenda and register online at http://www.syngasrefiner.com/UCG/agenda.asp.

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