(EnergyAsia, November 4 2011, Friday) — Australia’s Cougar Energy Limited has re-affirmed its two-pronged strategy to expand into Asia while seeking recovery of its Kingaroy power plant project in Queensland that has been shut down by the state government.

The ASX-listed company is working on developing and commercialising alternative energy projects, using the world’s best proven underground coal gasification (UCG) technology. 

At its recent annual general meeting in Melbourne, chairman Malcolm McAully told shareholders that it  had made significant advances over recent months  with its Australian and international activities.

“This includes progress with litigation recently launched against the Queensland government and government department officials over the unreasonable and unjustified shut-down of the Kingaroy project, as well as moving forward with significant negotiations with government authorities and local partners for underground coal gasification (UCG) developments in China and Mongolia.”

Cougar Energy has filed a suit against the Queensland government and three of its officials seeking more than A$34 million in compensation over the decision to halt the A$550 million Kingaroy power plant project. (US$1=A$0.96).

It is also appealing the shut-down decision in the Queensland Planning and Environment Court.

“We have been meticulous in the preparation of court actions and believe we have a robust case for compensation for losses,” Mr McAully said.

Managing director Len Walker told shareholders that Cougar Energy has received an increasing number of enquiries from companies requesting access to its knowledge and operational skills in Asia.

He said Cougar Energy plans to set up an Asian corporate structure to develop projects in the region.

He said: “In China, Mongolia and Indonesia, the company is negotiating with both the government and private sectors to access coal deposits suitable for development using the UCG process.

“While power generation is the immediate focus for development, due to both demand and simplicity of use, there is also a strong interest to use the syngas for conversion to natural gas and other petrochemical products.”