Leigh Creek Energy has announced that it plans to construct a gas plant at the site of the former Leigh Creek coalmine, 500 km north of Adelaide, South Australia, to produce commercial quantities of pipeline-quality methane. The company is also planning to develop an on-site power station.
Leigh Creek Energy and the Shanghai Electric Power Generation Group have announced a joint venture to build, own, and operate a power station in Leigh Creek, where an open-cut coalmine had operated for more than half a century.
Leigh Creek has infrastructure, including a rail line, sealed road access, high voltage power, water, an airfield, and other services.
Shanghai Electric has committed to further studies into using a combination of gas, high-efficiency coal, and solar or wind power to allow the production of baseload renewable energy. The joint venture plans to build a demonstration gas plant at the former Leigh Creek mine site, and flare gas later this year. It will then move to the construction of a commercial plants, which it expects to be operational by 2019-20. The company estimated the project would have a life span of more than 30 years.
Leigh Creek Energy has established a working capital facility with the Commonwealth Bank, after completing a scoping study and moving into a pre-feasibility study phase. The company also has assistance from the federal agency Innovation Australia.