what's the word?, page-10

Maybe the new LNP gov will be less Green/green sensitive than the last. The returned Independent for Nicklin went on record today saying, in effect, that he will be pushing for a broadening of the definition of 'prime farmland' and a hardening of the limitations of what can be undertaken on land so defined.

I am very interested to see who CanDo will manage the supply of fuel to power stations in Qld. Coal and gas should, according to economic theory for obtaining the best economic return and best tax return for Qld, be priced and taxed at export rates. Trouble is that export rates are 2-3 times those current for domestic consumption. If fuel and generation makes up about 20-30% of the recently recommendation residential power bill then going to economically efficient export price parity will add another 14c/kWhr to power bills. Watch CanDo say Can'tDo to economic efficiency.

If (big if) renewables become a bigger slice of power generation then baseload on the traded electricity market (excludes large fixed loads like refineries and smelters) will be less important and extended peaking plant will be much more important. (If you think this is unlikely consider that unsubsidised 5kW residential solar power systems have, today, a LCOE of 17c/kWhr and will drop by a quarter of this before the end of 2012 so the change to distributed generation could theoretically be justified to surge from now on.)

Peaking plants typically run on gas and have OS&H so poisonous CO and explosive H2 are not they would not be in house gas systems). Peaking plants can therefore run on CXY/CNX generated syngas and continue to let CSM gas be exported at parity price.

Domestic residential gas supplies are not a large amount in absolute terms and could potentially be supplied by separating the minor amount of methane generated alongside the CO/H2 of syngas.

Without this displacement of export parity priced gas for domestic generation and residential use I still wouldn't bet on CXY getting the green light in Qld from the rurally sensitive incomers.