June 08, 2010

Laurus Energy and CIRI Form Joint Venture Company to Commercialise UCG in Alaska

Alaska Native corporation Cook Inlet Region Inc. (CIRI) and Houston-based Laurus Energy announced the formation of Stone Horn Ridge LLC, a company created to commercialize syngas from underground coal gasification (UCG). The Anchorage based joint venture is developing syngas for power generation, ultra-clean liquid fuels and other industrial applications.

Stone Horn Ridge’s production site will be on resource-rich CIRI-owned land on the west side of Cook Inlet in South-central Alaska and will provide an alternative to natural gas, bringing price stability, clean reliable power and increased business competition to South-central energy needs. Ethan Schutt, CIRI’s senior vice president of Land and Energy Development commented, "By combining the abundant and otherwise unusable coal reserves on CIRI land with Laurus Energy’s proprietary Exergy UCG™ Technology, Stone Horn Ridge is creating a cost-effective energy source to meet increasing needs."

Stone Horn Ridge was formed to expand energy options using Ergo Exergy’s proven εUCG™ technology. Stone Horn Ridge will produce an energy-rich syngas, or synthesis gas, a domestic, secure and environmentally sound source of clean energy. As its first commercial application, Stone Horn Ridge will produce syngas to fuel a 100MW power plant in South-central Alaska. The company is also in discussions with potential customers to customize the product as a feedstock for other gas-based industries.

CIRI and Laurus Energy started working on the project in 2009 to develop a responsible and deliberate plan for providing Alaska with clean, dependable energy solutions. The partners have been test drilling to validate the coal resource and geology as a high-value target for syngas production. The formation of this Joint Venture company allows the project to continue at its rapid pace of development, with thorough site characterisation of the site expected to commence in a matter of weeks.