Australia's Surat Basin hosts four successive UCGgasifiers, a Gas to Liquids pilot plant and world-classlaboratory, as well as oxygen injection and coil tubingdrilling equipment, and a wastewater treatmentfacility. Our work for UCG demonstration andcommercial operations on tenure in the Americanstates of Wyoming, Montana and North Dakota isramping up. We have sourced technical experts fromall over world for the development of UCG. Now withover 380 staff across Australia, the United States andUzbekistan, and the most advanced UCG technology inthe world, we are absolutely certain we can convertcoal, with no intrinsic traditional value, into a gas thatcan produce cleaner gas-fired electricity and syntheticdiesel and jet fuels.The commercialisation of UCG requires absolutededication and precision, and even more so in thepursuit of a carbon neutral energy economy. In the drivetowards the commercialisation of UCG, Linc Energy hasestablished several avenues for carbon solutions. In late2009 we entered into a partnership with the UnitedKingdom's AFC Energy to combine UCG with hydrogenfuel cell technology for the cleanest form of electricity.UCG is one of the most economical producers ofhydrogen, which is an ideal feedstock for fuel celltechnology. When used for power generation, fuel celltechnology is low cost and easy to maintain, with theonly by-product being clean, demineralised water.Following the world-first UCG and hydrogen fuel celltrial at the Chinchilla Demonstration Facility in Junethis year, the company has now acquired a 10 per centstake in AFC Energy. UCG certainly opens up new coalopportunities, so its combination with fuel celltechnology cuts a clear path to achieving the ultimatein clean electricity.More recently, we have been examining carbon captureG-20 MEMBERS095converts deep underground coal into syngas in the coalseam itself. There is no removal of the coal, norequirement for heavy infrastructure, or disruption tothe land. It all happens below the surface, sometimesup to 1,000 metres deep, but normally at depths ofabout 200 to 300 metres. UCG involves drilling aseries of wells deep into the coal seam. The coal isheated to 1,200 degrees centigrade and an oxidant,such as air or oxygen is injected. Heat, pressure andwater from the coal seam combine in the confinedspace to gasify the solid coal into syngas. Accessingsuch deep coal opens up a significant number of"new" resources for use. I firmly believe that UCG isthe best way to draw energy from traditionallyunrecoverable deep coal. In fact, the World EnergyCouncil suggests that UCG could potentially increaseknown world coal reserves by 600 billion tonnes4. Compared with traditional coal extraction such as opencut and underground mining, UCG carries a small landuse footprint and the land can easily be returned to itsformer use once the process is exhausted. Downstreamenergy products from the UCG process result in 25 percent cleaner gas-fired combined cycle powergeneration5and ultra-clean diesel and jet fuels with nosulphur and lower aromatics and particulates.Linc Energy is leading the way to commercialise UCGacross the globe. We own the only UCG commercialoperation in the world, Yerostigaz, which has beenoperating for nearly 50 years. In Australia, we havebeen operating demonstration scale UCG gasifiers forover 10 years to establish that the process is suitablefor western world conditions. Both of these operatinglocations have enabled us to understand UCGtechnology far better than any other entity in the world.Our UCG Chinchilla Demonstration Facility inAbove:Linc Energy'sUCG direction drilling forthe economic conversionof coal to cleaner energy.Lef t:Peter Bond?

been involved in transforming underperformingcompanies into valuable assets, in both Australia and overseas. From late 2004, and in just three years, Bond hastransformed Linc Energy from a small start-up, to a successful IPO on the AustralianSecurities Exchange (ASX) - and onto becoming anAU$2 billion ASX200 company. Mr Bond is also amember of the BRW Australian Rich List and isknown for his philanthropic efforts.and storage (CCS) opportunities and considering thesefor application to exhausted UCG cavities. Academicresearch suggests that UCG cavities could absorb up to400 times more carbon than traditional CCS methodsdue to the effect of the UCG process on thesurrounding coal seam. From an economical andenvironmental standpoint, UCG to CCS is a very worthycontender in the pursuit of reducing global carbonemissions. Basically, once operations are complete,UCG cavities remain ready for re-use and carbondioxide can be injected with no requirement foradditional infrastructure or drilling6. The company has now signed an exclusive agreementwith Helmholtz Centre Potsdam GFZ GermanResearch Centre for Geosciences to develop and applyCCS with its UCG technology. The research willconfirm the exact quantity of carbon dioxide that isable to be stored in any single UCG cavity. As nationscontinue to seek the amount of energy required tosustain their industries and economies, UCG cavitiescould become just as attractive as the cleanerdownstream products available from UCG syngas -that is cleaner power and transport fuels. Also, with by-products from the UCG process able to be used forenhanced oil recovery processes, greater energysolutions are possible.Following the oil spill in the Gulf of Mexico, PresidentBarack Obama addressed his constituents stating thateach day the United States sends nearly US$1 billionof its wealth to foreign countries for their oil7. Now, asindustrial nations tally their coal, oil and gas reservesand contemplate the remaining years of supply, UCGoffers a genuine opportunity for countries like theUnited States to gain greater energy independence andtap into coal reserves previously consideredinaccessible. I believe UCG offers coal-rich nations theability to produce cleaner power and transport fuelswithin their borders, whilst also offering mechanismsto achieve a carbon neutral footprint. I also believe,with cheap UCG syngas and by-product options, thetechnology supports the recovery of a significantamount of oil from once-thought irrecoverable anddepleted oil reservoirs. It is now time to take note thatUCG is truly the new energy frontier. nFor more informatinon, visit: www.lincenergy.com.auABOUT THE AUTHORPeter Bond is Chief Executive Officer of Linc Energy Ltd. He began his career in mining thirty years ago, after training as a metallurgist at BHP. At the age of 23, his entrepreneurial streak shone and he personally raked and hand cleaned over 1,000 tonnes of coal, which he sold to a brick company for AU$17,000.After years in the coal industry, Mr Bond went on to own his own coal company. Since then he has 096G-20 MEMBERSAbove:Linc Energy'sworld-class ChinchillaDemonstration Facility isthe birthplace of cleanerenergy for the westernworld