Although LWP's core product is aimed at deeper wells they may actually be able to out price sand in a remote location such as the Surat and Bowen basins if they were able to partner up with a company such as Kogan Creek power station at source. Kogan produce about 100,000 tons of fly as per year which they say on their website is partially land filled.
CS Energy is a member of the Ash Development Association of Australia, which promotes the beneficial reuse of power station ash and provides advice to the Queensland and NSW government environmental agencies.
Some 99.9 per cent of the ash created at our power stations is collected in a manner that allows it to be recycled in accordance with a beneficial reuse process established by the Department of Environment and Heritage Protection.
The ash is able to be used as a cement replacement in concrete, a soil improver, an adsorbent for oil waste, and as flowable fill in large civil engineering projects such as highway embankments and mine site rehabilitation.
CS Energy recycles over 100,000 tonnes of ash each year from its coal fired stations and is working with a number of potential users with the intention of substantially increasing the reuse of ash in existing and new ways.
Captured waste ash from the electricity generation process is piped to the nearby Kogan Creek Mine site, where it is used to fill a specially designed ash cell. Once the ash cell is full, it will be capped with mine spoil, progressively rehabilitated with top soil and then revegetated.
So with 40000 wells planned and a local fly ash source that should be free or extremely cheap (they are possibly paying to dump it) there could be an opportunity.
CSG wells are generally shallow, smaller than oil wells and do not always require hydraulic stimulation but if we assume that half of them do and they each require 50,000kg it stacks up quite well.
50t x 20,000 = 1 m ton or 50000t p.a for 20 years
Also for an idea of other local opportunity look at the cooper basin, where it is estimated that in 2014 ~40 million tonnes of proppant (sand and ceramic) was sent down hole. From info I could find the sand is costed at AUD ~25c/lb and ceramic is 40-50c/lb. If LWP can sell high grade proppant at 20c/lb in an environment where oilers are looking for any cost savings possible then they are I think they may quickly find local support.
