Press Release
[New Delhi, 15th February, 2005]

GAIL signs MoC with Ergo Exergy Technologies Inc

GAIL (India) Limited has signed a Memorandum of Cooperation (MOC) with Ergo Exergy Technologies Inc., Canada, for development of gasification from large coal resources, which are not exploited by conventional methods of mining for either economic or technical reasons. The MoC was signed by Mr. B S Negi, Director (Planning), GAIL and Dr. M S Blinderman, CEO, Ergo Exergy Technologies, Inc, on the sidelines of the 3rd Asia Gas Buyers’ Summit.

As part of the MoC, the two companies will cooperate for implementation of commercial Underground Coal Gasification projects (UCG), in the context of exploitation of various coal / lignite resources in India, for various geological conditions with proper consideration for environmental implications.

The companies will identify and estimate resources and reserves of coal / lignite for the underground gasification projects in different locations in India with varying geographical projects such as depth, dip, number of coal / lignite beds in the sequence, coal rank, hydrogeological properties etc. The design of pilot and commercial UCG plants, design and planning of the surface facilities, design, procurement, construction, commissioning, operation and maintenance of commercial UCG projects will also be carried out by the two companies. The companies will cooperate for methods of cleanup, processing and conditioning of UCG gas to control its composition and quality, removal and sequestration of carbon-di-oxide. Study of the commercial scale UCG processes such as in situ coal / lignite combustion, air injection, thermo-chemical reaction in gas generator, modeling of rock mechanics and subsidence during UCG, control of ground water flow, optimization of gasification process parameters.

Ergo Exergy shall provide their proprietary UCG Technology for commercial projects. Ergo Exergy will help GAIL to determine technical and economic viability of the project, effective and efficient drilling techniques and production of UCG gas in commercial quantities with quality and consistency for fuelling a commercial combined cycle power plant.

ERGO Exergy is the developer and the owner of the Exergy UGC Technology, the practical UCG technology to commercial UCG projects worldwide. Ergo Exergy posses unique expertise and know-how in use of UCG gas for power generation and chemical synthesis including cleanup, processing and conditioning of UCG gas for value added applications such as production of methanol and clean diesel.