Linc Energy Limited (ASX:LNC) Enters Into MOU With GFZ (Germany) For Carbon Capture And Storage In Underground Carbon Gasification Cavities

Brisbane, Oct 5, 2010 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) (OTCQX:LNCGY) is pleased to announce it has entered into a Memorandum of Understanding (MOU) with a leading German carbon capture and storage (CCS) research centre to develop and apply CCS technology to Company's Underground Coal Gasification (UCG) operations.

Signed with Helmholtz Centre Potsdam GFZ German Research Centre for Geosciences (GFZ) based in Potsdam, Germany, the MOU establishes a framework for an exclusive working relationship for potential UCG and CCS projects. Under the terms of the agreement, GFZ will work on combined UCG and CCS exclusively for Linc Energy over the next 3 years and will conduct research to confirm the extent of CO2

Linc Energy has agreed to contribute EUR24,000 per quarter towards the UCG-CCS research and will retain ownership of all intellectual property developed. storage available in remaining UCG cavities once the UCG process is complete.

Academic evidence exists which indicates that UCG cavities are capable of absorbing significant quantities of CO2. This research also suggests that UCG cavities could absorb up to 400 times more carbon than traditional CCS methods due to the effect of the UCG process on the surrounding coal seam.

Peter Bond, CEO of Linc Energy, said, "This agreement indicates just how committed Linc Energy is to utilising stranded coal for the cleanest possible energy products, such as power and fuels, and demonstrates our intentions to create a carbon neutral commercial operating environment." . This research also suggests that UCG cavities could absorb up to 400 times more carbon than traditional CCS methods due to the effect of the UCG process on the surrounding coal seam.

"It is well known that UCG cavities provide one of the best opportunities to store CO2 on a commercial scale. Work resulting from our agreement with GFZ will confirm the exact quantity of CO2 to be stored, including modelling the process and its applications."

"Combined UCG and CCS technologies will make Linc Energy's UCG process carbon neutral, and we look forward to working in close collaboration with GFZ over the next three years. With a potential efficiency of 400 times that of other CCS methods when storing CO2 in UCG cavities, UCG operations could end up providing the CO2 sinks required in many parts of the world whilst also producing cleaner energy. Ironically, depending on the price that the world ultimately places on carbon, the UCG cavities themselves may have a comparable assets value to that of the energy produced from them" he said.

Contact

Information for Media: Greg Meyer Media Manager Phone: +61-7-3229-0800 E-mail: greg.meyer@lincenergy.com.au ASX Contact: Craig Ricato Director, Legal & Corporate Affairs Phone: +61-7-3229-0800 E-mail: craig.ricato@lincenergy.com.au Information for Investors: Anton Rohner Chief Financial Officer Phone: +61-7-3229-0800 E-mail: anton.rohner@lincenergy.com.au