The company is unable to progress its underground coal operations in Bloodwood Creek further while it continues to wait for regulatory approval from the Queensland Department of Environment and Resource Management to increase production.

Australian Syngas Association president Peter Bond – who is also the chief executive of Linc Energy – said he was concerned about the delay in regulatory approval which might ultimately lead to significant underground coal gasification players moving out of the state.

“Regulatory certainty is the backbone of business confidence and I am afraid it is diminishing here in Queensland thanks to these unnecessary delays and abandonment of due process,” Bond said.

The syngas industry is not seeking to lower the regulatory barriers but believes that an effective regulatory regime should result in timely decision making to ensure reasonable commercial outcomes, he said.

“We are looking at an industry player aiming to deliver lower emission energy solutions for the state of Queensland at a much lower price tag than some existing energy sources,” he said.

“In today’s race for energy security, a viable energy option such as underground coal gasification should be a part of Queensland’s energy mix and not just handed over to other countries which will leave a significant negative economic impact on Queensland.

“I sincerely hope Carbon Energy is able to continue making progress and achieving milestones while working with the state government and its regulator.”