cnooc/altona arckaringa ctl project, page-2

IER, TRUENERGY IN COAL-TO-OIL PLANT DEAL
07.07.2009 11:48 AM
Two Victorian energy companies have signed an agreement to develop a plant to convert low-grade coal to oil and a higher-grade coal.
Ignite Energy Resources (IER) and TRUenergy hope the plant will eventually produce 60,000 tonnes of high grade oils and 18,000 tonnes of high-grade coal annually.
The plant, using supercritical water technology, would create the products from 60,000 tonnes of high-moisture brown coal.
The companies on Tuesday said they had entered into a memorandum of understanding to develop a commercial demonstration plant at TRUenergy's Yallourn mine.
"By converting abundant, low-cost, high-moisture lignite into high-valued oil and coal products, IER hopes to provide a cleaner, secure energy source, while significantly reducing CO2 emissions," the companies said in a statement.
Work on the plant is scheduled to begin this month, and its expected to be operating by the second quarter of 2010.
IER currently operates a reactor at Somersby in New South Wales, and the proposed facility in Victoria would be much larger.
Associate Professor Sandra Kentish, a chemical engineering expert from the University of Melbourne, was sceptical of some of the company's claims.
"Supercritical water processes are known ... it means you have to take the coal up to quite substantial temperatures and pressures," Ms Kentish said.
"Water only becomes supercritical at very high temperatures and pressures. It is certainly feasible what they are doing.
"Is it economic? I would say very marginal. Would a net life cycle analysis show a reduction in CO2 emissions, I would also say highly unlikely," she said.
But IER chief executive Dr Len Humphreys defended his company's work.
"The net life cycle analysis actually shows reductions to the overall emissions of the power station by 40 per cent," he told AAP.
"If you look at a gross saving, it is a gross saving of 60 per cent. If you look at a net saving it is 40 per cent.
"We have managed to harness supercritical to a point where you don't need esoteric materials."
Dr Humphreys said the process would be economical with oil worth above about $US35 per barrel.
He would not disclose how much money the companies hoped to make from the plant, but said the high-grade coal was currently worth about $US80 per tonne.
The oil at its lowest use would be blended with marine diesel, which was worth about $US400-$US450 per tonne, he said.
Neither Ignite Energy Resources (IER) or TRUenergy are listed on the Australian stock exchange.
http://www.thebull.com.au/articles_detail.php?id=4518