Wildhorse Energy has confirmed the potential of its Mecsek Hills UCG project in southern Hungary to produce syngas as feedstock for power stations across central and Eastern Europe.

 

The pre-feasibility study found the UCG process could produce gas to substitute for the imported gas required to meet increased demand under Hungary’s recently approved Energy Strategy.

 

This calls for the installation of 2000 to 3000 MW equivalent of new gas-fired power generation capacity over the following 20-30 years.

 

Wildhorse will now start work on a bankable feasible study focused on the first phase of its 2 phase 180 MW equivalent power generation project.
This consists of a 61 MW equivalent commercial demonstration combined cycle gas turbine power plant that is expected to come into production in 2014.

 

Development of the Phase 2 large scale commercial plant, which will be capable of producing 130 MW equivalent of electricity, will follow immediately after commissioning of Phase 1.

 

Both the UCG and power generation units of the Phase 1 project will be sold to a strategic partner after an intended demonstration of reliable syngas generation and operation of the power plant for a period of 6-12 months.

 

The pre-feasibility study also identified a number of coal seams at the Váralja target area that are suitable for UCG development.
It found that just 22 million tonnes of the 185 million tonne inferred coal resource at the Váralja would be needed to support both phases of the project for 25 years.

 

Wildhorse said the study was a landmark development in the advancement of UCG application against the backdrop of the extremely positive pricing environment for energy production in the region due to the reliance on gas imports.

 

Hungary and European Union import about 80% and 36% of their gas from Russia respectively, leaving them highly susceptible to price hikes forced on them from the giant gas producer.