loy yang presenatation, page-12

"LYA is also investigating a number of other options to further reduce its carbon emission level including pre-drying of coal, carbon capture and other technologies...

Victorian brown coal generators emit 1.25tCO2/MWh to 1.55tCO2/MWh ."

The carbon price is primarily aimed at drastically reducing the above. LV is ground zero. So what are LYP/AGL etc options to reduce emissions and grab the govt cash?

"Black coal plants in NSW generate on average about 1.0 tonnes CO2 per MWh"

We know the Vic Govt last year would only consider new p/stations with 0.8 or less. HRL struggled to reach that and had to supplement with some nat gas. I think it was starting to look like a patchwork doll...hence investors pulled out?

The various Green groups have indicated the only intensity they would support is ~0.5 which would be the recent nat gas tech. That aint gunna happen for all the Alcoa/POO reasons (btw there is increasing recognition that nat gat aint that clean...methane leakage). So a compromise is inevitable. Lignite MUST be the fuel....but how?

So to appease most we are probably looking for an intensity of no higher than 0.7 with the possibility of reducing it further in time with new techs being proven.

In short - I reckon LYP/AGL's strategy for several years has been PRE combustion Coldry and POST combustion MBD Energy algae....with the CCS fantasy panting in the distance

http://www.mbdenergy.com/loy_yang.php

LYP/AGL/ARUP have stuck by Coldry through the badddd times. Remember Nethercote pics in the Tincom signing 2010...he was right in the mix then and even more so now.

"ECT intends to demonstrate the economics of commercial-scale Coldry production in Victoria by building and operating a single module (150,000 to 200,000 tpa) production facility. The intended location is Loy Yang, in the immediate vicinity of the Loy Yang A power station".

Nothing has changed except everything has improved...eg - ECT will soon OWN the DFT 100% rather than Tincom etc etc. Powerful position Monash will put ECT in. We will be able to PROVE the tech and then command the upper ground in negs with the Asians/Poland etc.

No longer will ECT be begging. Monash will be able to finance/connect things we never dreamed of imo. If you OWN the tech outright and have commercially proven it (I like those FOB figures Coldry V AEC) and have the right partner(s) to finance/promote it...does it get any better?...yep...Matmor down the track.

ECT put out a report a couple of years ago stating the 0.8 was in the bag via Coldry/USC...and I was led to believe 0.7 was likely utilizing IGCC at that time (IGCC has made great tech progress since then)

Cougar Energy...

"A power plant fuelled by UCG gas will produce 0.7 tonnes per MWh.

The syngas generated from UCG can be readly processed to remove its CO2 content for subsequent sequestration, thereby providing a source of clean energy with greenhouse gas emissions of less than for 0.4 tonnes per MWh"

"IGCC is now touted as capture ready and could potentially capture and store carbon dioxide"

"SHENHUA Group Corp, China's largest coal producer, and General Electric Co today announced the opening of their coal gasification joint venture"

GE are the guru's of IGCC tech. Shenhua recognise IGCC/syngas is the future for coal.

I notice ECT have extensively referred to IGCC as the "future" in past graphs in reports.

"Meanwhile, efficiency improvements that drive down CO2 emissions have significant cash value. These may be simply achieved by using a blended fuel comprising raw lignite and Coldry pellets. This is the medium term potential opportunity ECT see coming from the implementation of the Carbon Tax in July this year".

According to an ECT report a while back... ALL existing LV generators can reduce emissions by ~8% by burning a 20% Coldry blend with minimal plant modifications. I like that since the target by govts is an uncontroversial agreed 5%.

So going back to the AGL pres quote:

""LYA is also investigating a number of other options to further reduce its carbon emission level including pre-drying of coal, carbon capture and other technologies"

I reckon its primarily Coldry, IGCC, MBD algae.....and CCS - that is their strategy to appease ALL interested groups - 0.7 and potentially heading to near zero.

Obviously EXPORT "Pilbara" potential is the main game/aim...but all the above adds to the multi-layered attraction to ECT.

June 15 or before ECT have said we will get news of the concluding of negs for the initial module....thats the biggie.

Anyway...wheres that 3b....liked the last 10 mins of trade today haha. Hope its just lobbed in to intra day trading soon...if it was pre/post market we "might" have a gap...I seriously couldnt deal with the "gap" chat ...please ECT just lob it in during the day...pleassse.

ECT become "real" with Monashs $4m banked. Until then we are still dreaming...tick tock

ps...I recently asked folks for any potential negatives (that havent been recently discussed)...I'm all out as i said recently...anyone?

http://www.shanghaidaily.com/login.asp?url=http%3A%2F%2Fwww.shanghaidaily.com%2Farticle%2F%3Fid%3D500871%26type%3DBusiness

http://en.wikipedia.org/wiki/Integrated_gasification_combined_cycle

http://www.ectltd.com.au/news/photo-gallery-victoria-coldry-signing-ceremony/

http://www.cougarenergy.com.au/environment.html

http://www.mbdenergy.com/loy_yang.php

http://www.ectltd.com.au/newsletters/shareholder-update-january-2012/