About 2/3 of Chile’s energy supply is imported, including 80% of both its gas and coal.  Chaucer Energy plans to apply the ISG process to stranded coal in Chile to produce syngas – initially for power generation and gas supply for heating, and later for conversion to industrial chemicals such as methanol or urea.

 

Chaucer Energy has reviewed all of Chile’s coal deposits and, after an initial exploration program near Puerto Montt, has focussed on the Magallan Basin, which hosts most of Chile’s coal and natural gas resources.

 

The Basin is defined by coal outcrops running N-W to S-E

and dipping to the east to depths exceeding 1000m. This creates the opportunity for ISG to utilise coal from depths in the range 150-300m, and sequestering emitted CO2 at depths exceeding 700m to meet long-term environmental targets.

 

Chaucer Energy has selected target areas approx. 15km south of Puerto Natales, based on the following:

• Existing drill data shows a 5km continuous coal seam running N-S approx. 5m thick at 100m depth, with an established resource of 10mt

• Gas wells 5 km to the east show coal continuity to 1000m depth

• Concession Area 12 sq.km. (red) granted and Application Area 12sq.km. (green) progressing

• Both Concession Areas are down-dip from existing drilling, reducing exploration risk

• A drilling program has been defined with the potential to establish a resource of at least 50mt.

• Further deposits to the south are under review

 

The energy demand in Puerto Natales is estimated at 55MW energy equivalent, including 15MW of electricity, while a greater energy demand exists at Punta Arenas approx. 200km to the south.

 

Longer term opportunities exist for the conversion of ISG gas to chemical products such as methanol and urea for domestic use and export.