The $A20 million commercial-scale UCG trial in the Surat Basin has hit its performance benchmarks to date.

“Carbon Energy is in the final stages of an air trial and this has confirmed that the site can produce syngas suitable for power generation,” Carbon Energy chief operating officer Andrew Dash said on Friday.

“The next stage will be to move on to a steam trial and, after which, a combination of oxygen and steam will be used to produce a hydrogen-rich syngas suitable for use as a high-value chemical feedstock.”

Once the trial is completed Carbon Energy plans to conduct a feasibility study of constructing with a partner a $1 billion ammonia plant and a $1-2 billion manufacturing facility.