CARBON Energy is set to begin development of its Blue Gum Gas project – the company’s first commercial-scale development in Queensland.

Queensland’s Department of Environment and Heritage Protection (DEHP) has completed its review of the company’s decommissioning report and rehabilitation plan, with Carbon now only requiring final approval from DEHP and the Department of Natural Resources and Mines, expected in early 2015.

Carbon has been developing Blue Gum and Bloodwood Creek as parts of its plans to capitalise on the looming east coast gas shortage, with the projects to involve underground coal gasification and construction of a synthetic natural gas plant at Blue Gum.

Carbon chief executive and managing director Morné Engelbrecht said Blue Gum would be commercialised as soon as government approval was obtained.

“The demonstrated and scientifically assessed Bloodwood Creek trial results provide strong confidence in the company’s technology through its complete lifecycle, from initiation to rehabilitation, which now underpin the marketing of the technology,” Mr Engelbrecht said.

“While the Queensland government considers the departmental recommendations, the company will increase its attention on securing further licensing opportunities globally, armed with the data supporting the outcomes from the Bloodwood Creek trial.”

Mr Engelbrecht said the company would direct its resources toward securing off-take and development partners for the project and advancing its international business development program.

“The environmental results that we have achieved from the Bloodwood Creek trial provide us with a powerful demonstration of the advanced and leading nature of our gas production technique,” he said.