It is reported that Blackham Resources Scaddan coal to liquids project in Western Australia has the potential to produce 6.1 million barrels of oil equivalent per annum.

A phase two Preliminary Process Study at Scaddan confirmed the coal to liquids plant could support a 15,000 barrels per day operation using a Fischer-Tropsch process to produce diesel and naphtha.

Blackham has identified a list of six gasification technologies suitable for gasifying Scaddan lignite for the production of chemicals and fuels. The company believes the production of low temperature Fischer Tropsch diesel and naphtha through gasification is an attractive option for value addition to the Scaddan lignite.

The phase two PPS aimed to establish the major plant and equipment specifications for eight coals to liquids process flow sheet options prepared in the phase one report, which was finalized in March 2011.

In the June quarter of 2011, the resource at Scaddan was revised to more than 1 billion tonnes. With resources from Blackham nearby Zanthus deposit, the company combined resources equate to approximately 40 years worth of feedstock based on a 60,000 barrel per day coal to liquids facility.

Based on existing resources, the company has potential for 870 million barrels of oil equivalent production.

(Sourced from www.proactiveinvestors.com.au)