Its odd to be confounding two separate issues here but lets address CSG. There is a reason in the interview they were stressing metallurgical coal as the source for the gas. Whilst brown coal mines are going to be dead the other end of the spectrum is met coal. There is currently no substitute hence this will be mined one way or another for the foreseeable future. The high gas seams must be drained as it is dangerous and with resent gas explosions there is even more incentive to properly degas prior to mining. Fracking may be required both for production and for mine operation reasons. This is a fundamental cost of CSG as anyrate. The point being this gas will exist and be released regardless. The fact that new government legislation encourages the gas to be utilised is a good thing for QPM and arguably environmentally. Gas produces less C02 per unit energy output than coal and is less polluting so will always trump coal for ESG in a direct comparison. Brines extracted from CSG development can and are treated as part of the opex, there is no comparison to heavy metal contamination/tailings. As for fracking, you can do it and it was originally done with water and walnut shells so the only thing preventing fracking fluids from contaminating ground water is legislation on what products are allowed (I dont know where this currently stands but it is a stupid problem to have) . As 95% of east coast gas is CSG it was inevitable we would be utilising CSG. If anyone thought it was going to come from renewables that was/is a pipe dream. This is why when the gas price exploded I was concerned, said so, pulled my money and shut up. With GM coming on board post the gas supply issues it was clear they new something we didn't and lo and behold the gas project appears. Excellent as QPM now have full control of the number one potential impediment to this project (IMO). If you want to convert (non existent for the energy required) renewables to electricity to generate thermal energy for a plant you are talking $40-50 Gj vs $5-6 Gj for the well head gas price. The project would never be economic with this approach. Given QPM stated they are selling themselves the gas at cost that would be close to the mark however if diverting the profits to subsidise the gas to the Tech it could and seems to be even lower (based on interview comments). We are at the start of a huge transition that will take time so as much as people would like to be %100 green this is not going to happen over night. Most people are comfortable with moving in the right direction rather than taking an extreme and untenable absolutist position.
QPM Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
