Carbon Energy was formed in 2006 following a joint venture between Metex and the CSIRO to develop and commercialise underground coal gasification (UCG).
As part of the formation of the new company, it was agreed, previous collaborative arrangements regarding ongoing intellectual property rights to UCG and service agreements with the CSIRO would continue.
In May 2008, Carbon Energy committed to the development and construction of its first pilot scale, oxygen injected UCG trial based on a standard 1 petajoule (PJ) per year UCG syngas module at its Bloodwood Creek site, near the Queensland township of Dalby and positioned itself as a significant innovator within the State's energy industry.
At the same time, the Company announced a Memorandum of Understanding (MOU) with Incitec Pivot Limited (IPL) to provide IPL exclusive global rights to the use of Carbon Energy's UCG technology for ammonia and ammonia derived product manufacture.
Since then Carbon Energy has gone on to develop its trial into a commercial reality. In 2011, the Company achieved an Australian first in generating electricity from syngas.
During 2012 to 2013 the Queensland Government appointed Independent Scientific Review Panel (ISP) provided its findings. The ISP in short provided “in-principle” support and recommended Carbon Energy to decommission and draft a rehabilitation plan in order to demonstrate the full-lifecycle of a keyseam project.