brown coal - latrobe valley ctl project

This thread is to discuss one of GPPs main 2 projects.

Coal to Liquids - Latrobe Valley

Developing JV with University of Arlington, Texas.

Current JORC resource 101mt lignite (brown coal)

EL 4500 & 5227
EL 4500 contains 101mt of JORC brown coal resource.
Coal samples for Coal to Liquids assessment by the University of Texas; Arlington, Texas, USA have been dispatched and the company is awaiting the test results. Waiting for IP to be registered in Australia and New Zealand.

For a very small company, GPP hold some pretty good Latrobe tenements outside of the major power producers. I think we will have closer to 1bt once we finish defining all the potential resource.

If you think about the sale for $2.8m for ONE of their 5 tenements in Latrobe to AEC vs market cap of $3.3m, you get the picture of the potential value AS IT IS, inground.


There is a lot of good information on the ESI threads, and I have pasted this one from the ESI AGM, Nov 30 2011.

We know GPP have talked with ESI regarding there technology to dry the coal for their proposed project because they said as much at the GPP AGM in the presentation.

From ESI...

"In the Annual Report, I noted that 41% of today's global power generation is coal based. Globally around 5.5 billion tonnes of lignite and black coal are consumed each year to generate electric power.

Global energy needs are expected to increase by 36% over the next 25 years. A good proportion of this increase can be provided by coal, particularly if CO2 emissions from coal can be cost effectively abated. The Coldry process produces a black coal equivalent for which CO2 emissions are some 50% lower than for raw lignite.

The commercialisation opportunities for Coldry in Victoria, China, India and elsewhere, as a power station fuel over the next 25 or 30 years, are very substantial. Whilst we will see increasing power generation from renewable energy sources, thermal coal is expected to remain the mainstay for electricity generation for the next several decades. As you probably know, Victoria has the largest accessible reserves of lignite in the world; also Victorian lignite is very high quality. The energy contained in the Victorian coalfields is some six times the energy contained in the North West Shelf gas reserves. Yes I said six times. You will have read recently that the expected investment in developing just two major projects in the North West Shelf gas fields exceeds $40 billion.

Given the relative size of the energy resource in Victoria, and the capability of the Coldry process to cost effectively produce relatively clean energy from lignite; it is not unreasonable to expect multi-billion-dollar investments in developing this Victorian energy resource.

We at ECT see a good future for the use of Coldry from Victoria, and elsewhere, including China and India, as a power station fuel for the next 25 or 30 years.

But what after this?

The Victorian lignite resource is so vast, and the quality of the lignite so good, we see a future for Coldry even after thermal coal is replaced as the primary fuel for electric power generation. In the longer term, Coldry has a future by providing the first stage in a range of processes, which converts lignite into other energy products. Unprocessed lignite cannot provide this first stage....

Coldry, as a conversion fuel first stage process, has enormous potential in Victoria, where the lignite has ideal properties. It may also have opportunity in China and other locations where the lignite is suitable for conversion. Given the size of the Victorian reserves of lignite, energy products, including gas, could be produced from Victorian lignite for hundreds of years into the future."


This is what GPP are looking at, conversion fuel as a first stage process.
From memory, the Coldry process at front end would cost around $10 per barrel of deisel produced and the process itself $35-45.