Wildhorse Energy signs MoU with E.ON for underground coal gasification project

Wildhorse Energy, a developer of underground coal gasification (UCG) and uranium projects in central and eastern Europe, has signed a Memorandum of Understanding (MoU) with E.ON Hungaria, the Hungarian arm of the Germany-based utility giant.

The non-binding agreement is to examine and evaluate the feasibility of building an UCG commercial demonstration plant in Hungary, which will be fed from Wildhorse’s flagship Mecsek Hills project.

“We believe that UCG is at the tipping point of recognition in the wider energy market,” said Matt Swinney, managing director of Wildhorse Energy. “This agreement underpins [the company’s] UCG strategy, technology and team, and highlights the commercial opportunity evident in Europe and the rest of the world for the development of UCG projects.”

Commenting on the announcement, Liberum Capital said: “The interest of a major utility player such as E.ON is encouraging and may point to the wider applicability of the technology. Wildhorse are currently working together with an E.ON team and their assessment should be completed in Q2 2013.”

Written by Jonathan Rowland.