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 100-300m, 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

• Concessions areas of 22 sq. km. (shown in red) have been granted

• Concession areas of 9 sq. km. (shown in blue) are in the process of being granted

• An Independent Geologist’s report calculates a JORC coal resource of 100Mt exists in these areas based on existing drill data, with significant scope for resource expansion 

 

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.