Hillsborough Resources is constantly examining new opportunities related to coal, including the development of non-traditional markets, such as pulp and paper and greenhouse operations. Hillsborough has the in-house expertise to be able to analyse, evaluate, develop and implement appropriate business opportunities related the coal.
Present and future examples include: GH Fuels Limited and Coal Bed Methane.
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GH Fuels Limited |
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Overview: GH Fuels Ltd. was formed to target the growing market in converting gas greenhouse burners to coal operations. G.H Fuels Ltd. is the distribution company responsible for break-bulk shipments of Quinsam Coal.
Coal type: The greenhouse coal is a screened two inch stoker product with a calorific value on a Gross (as received) basis of 11,851 BTU/lb. The coal is low in sulphur and has a minimum amount of fines due to the screening process.
Customers: Our customers are typically greenhouse operators and owners of commercial buildings that require a lower cost alternative for heating. We also supply the hobbyist, blacksmith and homeowner who want to burn coal in their fireplaces. |
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Case study: The first shipment of coal to a greenhouse operator was in July 2001. Ivor, a former head of the BC Hothouse Association, was GH Fuels’ first customer. Ivor and Pat Rage, located in Port Alberni, BC burn Quinsam stoker coal, providing cheap, efficient heat for their crops of cucumbers. |
Max Grober,
Fiesta Greenhouse |
Max and Karen Grober own and operate a highly successful greenhouse near Campbell River, BC, where they grow high quality red, green, orange and yellow peppers. Like most greenhouses, the Grobers’ used natural gas to fuel the water heaters which keep the greenhouse at a steady 23 degrees Celsius. The substantial spike in natural gas prices in 2001 resulted in the Grobers switching to coal and they have never looked back. |
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Sales: For more information on GH Fuels or if you are interested in purchasing stoker coal, please contact Sharon Korol at 250.923.3989 or info@hillsboroughresources.com. |
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Exploration drilling at Quinsam mine |
Coal Bed Methane (CH4)
Overview: Methane (CH4) is a gas formed as part of the process of coal formation. Coal Bed Methane (“CBM”) is methane trapped within coal seams that have not been mined or from mined-out areas (gobs) of coal mines. It can be extracted by drilling into, and mechanically fracturing un-worked coal seams. While the CBM is utilized, the coal itself remains un-mined.
Strategy: CBM extraction is a growing trend in North America and Hillsborough secured title to CBM in 2004 by reaching an agreement with the Government of British Columbia to acquire the natural gas rights for a royalty. The target methane gas fields lie in close proximity to an existing gas pipe.
We are working with an operating partner to prepare an exploration and development strategy. The goal is to establish the potential for a commercial gas production from these properties on Vancouver Island, BC. |
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