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Victorian Brown Coal

Victorian Brown Coal. Dale Seymour Deputy Secretary Energy, Resources and Major Projects Department of Primary Industries, Vic. World Brown Coal. Source - World Energy Council: 2004 Survey of Energy Resources*. *Reserves data. Brown coal mines in the world.

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Victorian Brown Coal

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  1. Victorian Brown Coal Dale Seymour Deputy Secretary Energy, Resources and Major Projects Department of Primary Industries, Vic

  2. World Brown Coal Source - World Energy Council: 2004 Survey of Energy Resources* *Reserves data

  3. Brown coal mines in the world Source: Presentation Traralgon Bypass Inquiry GHD Pty Ltd

  4. Typical Characteristics of Latrobe Valley Brown Coal %weight • Moisture content ranges between 48-70%; • Ash content usually <5% (dry basis); • Average Net Wet Specific Energy: 8.6 MJ/kg; • Average Gross Dry Specific Energy: 26.6 MJ/kg. Moisture 48-70% Hydrogen 5% Sulphur & Nitrogen 1% Ash <5% *If JORC Classifications were applied : “Victorian Coal - A 2006 Inventory of Resources” GHD Pty Ltd

  5. Major Coal Players in Victoria *Proven and probable

  6. Total Capacity (2006): 8,913 MW Victorian Electricity Generation Capacity ** Includes embedded hydro generation, landfill and sewerage gas, and solar (minimal).Source: ESAA Electricity Gas Australia, 2007, p.14-15.

  7. The Future of Brown Coal • Victoria’s economy built on low cost power from brown coal • We have no comparable source of baseload power • CCGT baseload cost estimated at ~A$45 per MWh with gas at A$3 per GJ • Victorian gas supplies good but not as plentiful as coal • Gas from northern fields has higher pipeline costs and price risk • Gas-fired power most viable for peaking and intermediate use • Renewables also supported by Victoria (VRET) 10% by 2016 • Nuclear energy unlawful in Victoria

  8. What has Victoria done already? • Greenhouse Challenge for Energy and other policies have ensured that Victoria is a leader for market “demand-pull” and innovation “supply-push” policies and programs to accelerate technological change • Support for a national emissions trading scheme • Support for renewable technologies (VRET) • Driving energy efficiency (building standards, VEET) • Energy Technology Innovation Strategy

  9. Emissions Trading Scheme • Australian Government establishing an Emissions Trading Scheme as part of an effective framework for meeting the climate change challenge • In place by 2010

  10. Carbon Capture and Storage Policy and Legislation • Strategic Policy Framework forNear Zero Emissions from Latrobe Valley Brown Coal • On-shore CCS legislation delivered in 2008 • Position Victoria as a leader in carbon capture and storage • Reduce greenhouse gas emissions • Support new energy and energy related technologies

  11. Coal Utilisation Steps Research & Development Demonstration Deployment Strategic Applied Pilot Large Scale Monash: Lignite for Waste-water Clean-up $0.55 million over 3 years Aquex: Brown Coal dewatering$0.8 Million over 2 years. IP: Advanced dried Brown Coal Combustion $30 Million over 4 years HRL: IDGCC $50 Million over 4 years Coal Prep HRL: Advanced Flaw Detection $0.45 Million over 3 years. HRL: Boiler Optimisation $0.39 Million over 3 years. HRL: Advanced Materials Assessment $0.525 Million over 3 years. Monash: Advanced Gasification $0.3 Million over 3 years. Monash: Oxy-fuel combustion $1.3 Million over 3 years Combustion Gasification CSIRO: Modelling of Dried Brown Coal Combustion $0.55 Million over 3 years Loy Yang Power: Post Combustion Capture $2.5 Million over 2.5 years. CO2CRC: Pre Combustion Capture $2.06 Million over 3 years IP: Advanced dried Brown Coal Combustion $30 Million over 4 years CCS Otway Basin Carbon Storage Trial $4 Million ETIS 1 - Brown Coal

  12. ETIS 1 – Large Scale Demonstration Project - International Power Hazelwood 2030 • Coal drying (steam fluidized bed) – retrofit of an existing 200MW boiler to accept dried brown coal @ 12% moisture. • PF combustion demonstration applicable to ultra-supercritical plants • Drying technology can be for retrofit or used for new plant • Up to 30% reduction of Greenhouse gases at commercial scale • Operational by 2010 • Cost: • $369 million total project cost • $30 million from Victorian Government • $50 million from Australian Government

  13. ETIS 1 – Large Scale Demonstration Project - HRL - IDGCC • HRL Ltd - Integrated Drying Gasification Combined Cycle or "IDGCC”: • Already proven at 10 MW scale • Uses 30% less brown coal for every megawatt hour than Victoria’s most efficient current plant • Uses 50% less water than current best practice • Exploration Licence granted to HRL for the development of a new 800 MW power station using the IDGCC process • Cost: • $750 million total project cost • $50 million from Victorian Government • $100 million from Australian Government

  14. Otway Basin Pilot Project • Australia’s first demonstration of the injection and underground geological storage of CO2 • Also involves development and implementation of rigorous monitoring and verification regime • Up to 100,000 tonnes of gas will be injected

  15. CO2 Storage Opportunities adjacent to Latrobe Valley

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