CIC Energy Corp, a TSX/BSE-listed company engaged in the advancement of the estimated US $9.5 billion Mmamabula Energy Project, announced the commencement of this project’s feasibility study as well as a detailed market study on a coal-to-hydrocarbons project at the company’s Mmamabula Coalfield in Botswana.
This follows positive results from an internal scoping study, which indicated robust economics for the coal-to-hydrocarbons Project, which is currently 100 percent owned by CIC Energy.
According to the statement, the coal-to-hydrocarbons project is one of the ways that CIC Energy is working to maximize the value of the coal resource at Mmamabula, beyond Mmamabula Energy Project. The current Mmamabula coal resource estimate of approximately 2.3 billion tones, in the measured and indicated categories, exceeds projected coal consumption for both Phase 1 and Phase 2 power plants. Additionally, the ongoing exploration is expected to lead to a further increase in coal resource.
Jacobs Engineering Group Inc, one of the world’s largest and most diverse providers of professional technical services with annual revenues exceeding US $8 billion, has been appointed by CIC Energy to conduct a feasibility study to produce synthesis gas from coal which can be converted to a variety of downstream products including chemicals, gas and fuels. Jacobs has extensive experience in applying gasification to meet the needs of various industries and has developed proprietary technology to improve the performance of gasification plants.
“Completion of this feasibility study is expected in the second quarter of this year,” the statement said.
This company also announced the appointment of Wood Mackenzie to do an in-depth market study for the Company’s coal-to-hydrocarbons project. Mackenzie will be assessing the potential demand for the different downstream products that can be produced from syngas including chemicals, gas and fuels. The first phase of this market study is expected to be completed in the first quarter of this year. This company has been providing a unique range of research products and consulting services to the energy and life sciences industries globally for over 30 years.
“The appointment of Jacobs and Wood Mackenzie to conduct feasibility and market studies is an important step towards maximizing the full value of the large coal resource at this planned power station and integrated coal mine in Botswana,” said Gregory Kinross, President of CIC Energy.