Wildhorse Energy has announced that it will extend the reach of its underground coal gasification process and de risk its Mecsek Hills project in Hungary with a new cooperation agreement with the Hungarian government.

The agreement provides Hungary with the opportunity to develop its extensive stranded coal reserves using the process developed by Wildhorse to provide the country with a major new source of domestic fuel, reducing its dependence on external sources

A success in Hungary could also lead to the technology spreading to the rest of Central and Eastern Europe.

Importantly, the agreement will de risk the first phase of the company's Mecsek Hills UCG Project on a legislative and regulatory level as it serves as a pilot project to demonstrate the ability of UCG to supply synthetic gas (syngas) as feedstock for power stations.

Wildhorse will work together with the Institute for Geology and Geophysics and the Technical Geology Faculty of the Miskolc University to collect information on the technical feasibility, environmental protection, licensing and the introduction of the technology in Central and Eastern Europe. This is aimed at unlocking Hungary’s domestic coal reserves and assist in establishing energy independence.

Many technologies used in the UCG process are already established in Hungary though Wildhorse's process will bring them together for the first time.

The agreement also provides an endorsement for building Wildhorse’s Commercial Demonstration Project at Mecsek Hills.

A pre feasibility study had found that current conditions in the Hungarian gas and electricity markets provide an attractive environment for the project to supply syngas as a feedstock for power stations.

Wildhorse has established a JORC Inferred Resource of 184.5 million tonnes of coal at the project in the Pécs region of southern Hungary.

Source - Wildhorse Energy

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