Transcript AJCC Presentation - Minerals Council of Australia

Australian Perspectives on
Low Emissions Coal Technologies
Mr Stewart Butel
Managing Director, Wesfarmers Resources Limited
Chairman, ACA Low Emissions Technologies Limited
16 October 2014
Ranking of Commodities in the world economy
12 months to mid 2013
Commodities
MINED
(‘000t)
AVERAGE PRICE
(US$/t)
VALUE
(US$ bn)
Coal
7,800,000
85
663
Iron Ore
1,900,000
130
247
Copper
17,000
7,100
121
Gold
2.65
42,300,000
112
Bauxite
260,000
350
91
Nickel
1,700
14,000
24
Zinc
13,000
1,800
23
Platinum Group Metals
0.48
30,300,000
15
Diamonds
0.025
580,000,000
14
Lead
3,600
2,000
7
Top Ten Total
9,995,000
(132)
1,317
Source: IntierraRMG for the International Council on Mining and Metals
2
Fossil fuels will be important for a long time to come
3 050 years
Total remaining recoverable
Proven reserves
resources
Cumulative production
to date
233 years
142 years
61 years
Coal
Natural gas
178 years
54 years
Oil
The world's remaining energy resources will not constrain the projected energy
demand growth to 2035 & beyond, but large-scale investment is required
Source: International Energy Agency, World Energy Outlook 2013
3
Australian Government’s Energy White Paper
• December 2013 – Issues Paper released for public comment
• September 2014 – Green Paper released
• Late 2014 or early 2015 - Energy White Paper to be released
“The IEA forecasts that fossil fuels will continue to provide a significant
share of global stationary energy generation, which is largely driven by
economic growth in emerging economies such as China and India. This
means there will be a need to continue to develop lower emissions fossil
fuel technologies such as carbon capture and storage (CCS) and take-up
various high efficiency low emissions production techniques.”
Australian Government’s
Energy White Paper Issues Paper
4
Improve efficiency, then deploy CCS
Source: IEA Insights Series (2013), 21st Century coal: advanced
technology and global energy solutions
5
Global CCS Projects - Overview
PROJECT
Abu Dhabi
Carbon
Capture,
Utilisation &
Storage Project
Boundary Dam
FutureGen 2.0
Gorgon LNG
Project
Kemper County
Petra Nova
TECHNOLOGY
CO2 capture (from
Direct Reduction Iron
facility) with Enhanced
Oil Recovery (EOR) &
storage
Sub-critical coal
Shell Cansolv
PCC Retrofit
LOCATION
SCALE
Abu Dhabi,
United Arab
Emirates
0.8 million tonnes
per annum (MTPA)
CO2 capture used
for EOR
Saskatchewan,
Canada
Note: Direct Reduction Iron facility already
removes CO2. This stream is currently vented
US$1.13 B
World’s first large scale project
STATUS
Execution
(expected
capture from
2016)
Commissioning
Awaiting Final
Investment
Decision ( FID)
Sub-critical coal
Oxyfuel Retrofit
Illinois,
USA
Pre-combustion
capture / amine capture
process
Barrow Island,
Western Australia
3.4 - 4.1 MTPA
Saline Reservoir
World's largest commercial-scale CO2
injection facility
Construction
(commence
injection 2015)
Mississippi,
USA
582 MW
3.5 MTPA
EOR
US$5.5 B
Construction
(complete 2015)
Texas,
USA
250 MW
1.4 MTPA
EOR
IGCC coal
Pre-combustion
Newbuild
Sub-critical coal
Mitsubishi Heavy
Industries
PCC Retrofit
US$1.65 B
US$2 B
Sinopec Shengli
Fluidised bed coal
PCC Retrofit
Shandong,
China
White Rose
Supercritical coal
Oxyfuel Newbuild
North Yorkshire,
UK
Gasification
Pre-combustion
Newbuild
Shaanxi,
China
Yanchang
Integrated CCS
110 MW
1 MTPA
EOR
200 MW
1.1 MTPA
Saline Reservoir
COST
US$122.5 M
for CO2 dehydration & compression
facility only
~250 MW
1 MTPA
EOR
426 MW
2 MTPA
Depleted Oilfield
0.46 MTPA from
chemical production
EOR
US$469 M
Costs per USDoE
World's largest post-combustion CO2
capture (PCC) system for an EOR project
Construction
(commenced
July 2014)
To be finalised
in Front End Engineering & Design
(FEED)
FEED
Awaiting FID
To be defined
as part of FEED
Define Stage
(FEED)
To be defined as part of FEED
First capture phase began in 2012 and pilot
injection testing under way
Define Stage
6
COAL21 Fund
World-first voluntary levy on coal producers
Facilitating early demonstration of low emissions coal technologies
Targeted co-investment with other stakeholders (Government,
electricity generators, equipment suppliers, other industry investors)
Strategic approach:
• Proving storage in Australia
• Engagement with projects actually sequestering CO2
• Promoting multi-sector involvement in CCS
• Promoting community acceptance of CCS and coal’s ongoing use
• Reducing greenhouse gas emissions from coal mining operations
7
Examples of COAL21 Fund Projects
1. Capture projects
2. Storage projects
3. Research and Development (R&D) projects
4. Fugitive emissions projects
8
Demonstration project - Callide Oxyfuel
Objective
• Retrofit oxy-fuel technology to 30MW
boiler at Callide A power station
• Operate for 2 years
Status
• Plant commissioning completed Dec 2012
• 8,000 hours operation in full oxy mode
• Complete demonstration by Feb 2015
9
Storage Projects
Potential CO2
Storage Areas – Qld
Qld Carbon Geostorage Initiative
Objective
• Identify and assess sites for the safe, long-term geological
storage of CO2 in Queensland Surat Basin
Status
• Funding commitments being confirmed
NSW Storage Assessment
Objective
• Identify and assess sites for the safe, long-term geological
storage of CO2 in NSW
Status
• Six wells drilled in key geological basins
• Data analysis in progress
Potential CO2 Storage Areas
– NSW
Otway R&D
• 65,000 tonnes CO2 stored in depleted gas field
• Ongoing R&D on aquifer storage
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Storage Projects (continued)
Carbon Transport and Storage Company
(CTSCo) Surat Basin Integrated CCS
project - Feasibility Study
Objective
• Demonstration to safely and securely sequester
CO2 into the precipice sandstone of the Surat
Basin , Queensland
Status
• Feasibility Study Stage to commence shortly
Surat Basin
Research & Development
Australian National Low Emissions Coal (ANLEC) R&D work
Objective
• Broad based applied R&D program covering key CO2 capture
and geological storage technologies in support of demonstration
projects
Status
• All programs progressing well
Micronised Refined Coal fuel for a Direct Injection Carbon
Engine (MRC-DICE)
Objective
• Atomisation and combustion tests in a 1MW scale test engine
Status
• Funding commitments now confirmed
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Fugitive Emissions
Objective
• Demonstrate safe deployment of
Ventilation Air Methane (VAM)
abatement technologies at
underground coal mines
Status
• Initial high level risk assessment
complete
• Suite of four projects initiated
World’s first VAM demonstration Power Plant
at BHP Billiton’s West Cliff Colliery (MEGTEC
VOCSIDISER® technology)
Demonstration of
Corkys VAM –
Regenerative After
Burner (VAM-RAB®)
technology at
Centennial
Mandalong mine
13
Concluding comments
•
Coal extraction and utilisation are set to continue to expand over the next
two decades
•
Coal has an important role in a secure and sustainable energy future but it
will ultimately need to be a low carbon future
•
Increasingly, the focus for coal and other fossil fuel use will be China, India
and the rest of Asia
•
CCS is not a coal technology but one relevant to all fossil fuels and heavy
industrial plant
•
To reduce the cost of CCS we need to incentivise high efficiency and low
emissions technologies rather than just focus on CCS
•
Demonstration, R&D and knowledge transfer activities will remain important
•
For Australia storage is a priority as well as continued contribution to the
international CCS R&D and demonstration effort.
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