Hi VOGCAn insight I can provide is that I believe your assumed...

Hi VOGC
An insight I can provide is that I believe your assumed CO2 bulk pricing could be overstated (I know you quoted the VEN representative @ AUD$300/T) - I have experience in procuring CO2 food grade bulk gas for large manufacturing operation in the South East of SA. I believe your estimate of CO2 market price is too high by about 10-15% on current multi year contracts available, a couple of points below to add to the conversation:
1. Current bulk CO2 pricing suggests around 10-15% less Ex works than assumed in calcs
2. Others such as Air Liquide are recovering CO2 commodity from natural gas power station's emissions at Torrens Island power plant making use of the resultant CO2 by-products. Air Liquide are marketing their CO2 as a more eco-friendly source to their potential customers (because they are capturing CO2 byproduct instead of releasing to the environment). Comparatively, the LKO proposal is effectively releasing stored CO2 from an underground reserve which could be seen to be a less desirable form of CO2. It is possible that Companies with high CSR driven policies may not prefer to procure from the Nangwarry resource (i.e Schweppes, TWE and Coopers to name a few)
3. Nangwarry site is geographically a long distance from some of the large CO2 customers such as food processing in and around major cities like Adeaide and Melbourne, the CO2 price would need to be competitive against others who have less distance to transport their own CO2 gas. i.e BOC CO2 site @ Boggy Creek Vic, and beforementioned Air Liquide CO2 capture facility @ Torrens Island power station.
4. Effect of Nangwarry coming online and increasing the CO2 resource pool available and competition in the market - there is a reasonably static demand for CO2 bulk gas to customers so the new supply could well be in excess of demand for a period of time while the market and competitors adjust their volumes and pricing accordingly - pricing could be affected for the first couple of months, or possibly fist couple of years as a result - especially as food grade product can take time to gain customer acceptance.

In my opinion I think the price assumed is a little high and market driven factors need to be taken into account when working out the NPV.

I hope my views can help your assessment of NPV.

Cheers

LS