Cluff Natural Resources boosted by independent report on UCG

LONDON (ShareCast) - (ShareCast News) - Shares in Cluff Natural Resources surged over 12% early on Monday, after an independent report highlighted the potential economic benefits of using underground coal gasification (UCG) in the UK. According to an independent report published by UK independent economic consultancy firm Biggar Economics, the underground coal gasification industry in Britain could be worth up $12.8bn if given the go ahead.

The report added underground coal gasification, a method of converting coal which could not be extracted via traditional methods into gas, would create an average of 7,500 jobs and, at its peak, could see 11,900 people employed.

However, as is the case with the fracking for gas industry, British authorities are yet to allow the method to be used in the UK.

"The findings of this report highlight the huge potential for the development of a UCG industry in the UK," said group chief executive and chairman Algy Cluff.

"UCG has a vital role to play in the diversification of the UK's energy mix and its long term security and this report demonstrates how the development of UCG would create significant benefits for the UK economy." The eight projects identified in the report could add a further 3,600 megawatts of power capacity to an industry that would be used to power gas fired power stations.

The report added that Cluff's Kincardine licence in Scotland, one of the eight projects mentioned in the research, could generate total benefit of approximately £603m gross value and support an average of over 350 jobs over the long term.

Cluff Natural Resources shares were up 12.41% to 4.07p at 0927 BST on Monday.