coal21 – pathway for lowering emissions from coal jcosgrave coal21...coal21 – pathway for...
TRANSCRIPT
![Page 1: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/1.jpg)
COAL21 – Pathway for Lowering Emissions from Coal
Josh CosgraveDirector – Government Relations, COAL21 Ltd
![Page 2: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/2.jpg)
Overview
• The Sustainable Development Goals and Mining• The Sustainable Development Goals and Coal• The Challenge and a solution• COAL21 – a part of the solution
![Page 3: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/3.jpg)
SDGs and Mining
![Page 4: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/4.jpg)
![Page 5: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/5.jpg)
SDGs and Mining
The Greater Good Business Drivers:• Used to be focused only on
compliance
• Poor performance impacts on future approvals
• Good performance makes companies the miner of choice
• Cements ‘social licence’ and reduces the risk of outrage and a regulatory response.
• There is a link between sustainability and long term company value
![Page 6: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/6.jpg)
SDGs and Coal
![Page 7: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/7.jpg)
![Page 8: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/8.jpg)
Today’s global use of coal71% of global steel 69% of global cement
38% of global electricity ~ 20 million Electric Vehicles by 2020
![Page 9: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/9.jpg)
Nearly 1 billion people live without access to electricity
About 1 billion people worldwide live without access to electricity
Nearly 2.7 billion rely on traditional fuels for cooking
![Page 10: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/10.jpg)
Urbanisation and industrialisation are transforming developing and emerging economies
![Page 11: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/11.jpg)
Asian thermal coal use rises from 2024Asian thermal coal imports (millions of tonnes)
-
200
400
600
800
1,000
1,200
2007 2009 2011 2013 2015 2017 2019f 2021f 2023f 2025f 2027f 2029f
SE Asia
Other Asia
India
Korea
Taiwan
Japan
China
Source: Commodity Insights, Market Demand Study: Australian Export Thermal Coal , June 2018
![Page 12: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/12.jpg)
Metallurgical coal demand stableCountry Metallurgical Coal Imports (millions of tonnes)
0
50
100
150
200
250
300
350
400
2017 2020f 2025f 2030f
Source: Commodity Insights, Market Demand Study: Australian Export Thermal Coal , June 2018
Brazil
Europe
Taiwan
South Korea
Japan
India
China
![Page 13: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/13.jpg)
![Page 14: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/14.jpg)
The Challenge and a solution
![Page 15: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/15.jpg)
The Challenge and a solution
Source: International Energy Agency CCS Unit
2 degreesReference
CCUS - 14 % Gt CO2 cumulative reductions
Beyond 2 degrees
(2 degrees)
CCUS – additional 32 %
![Page 16: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/16.jpg)
Messaging on coal and CCUS remains a challenge
Australians want to see that coal has a future based on safe and deployable low emission technologies
Restructuring economies to succeed in a carbon constrained world lies in the deployment of effective low emissions technologies
Well understood economic and employment benefits
9 out of 10 don’t understand coal link to steel and cement production
Climate concern is growing – coal considered for now, not forever.
Little understanding of the importance and global effort to capture carbon.
Fossil fuel v renewable energy focus only one third of the equation.
Transport one fifth and industry more than 6% of emissions.
In 2 degrees scenario CCUS required for 14% of reduction
In below 20 CCUS will be 32% of reductions.
CCUS
![Page 17: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/17.jpg)
COAL21 – a part of the solution
![Page 18: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/18.jpg)
What is COAL21?
History
Collaboration
Current Commitment
Future Commitment
A $550m collaboration by the Australian black coal industry focused on lowering emissions from coal to support cost-effective, reliable and cleaner energy both in Australia and globally.
Established in 2007 and funded by a voluntary levy on all black coal production and co-invests with other stakeholders:Government, electricity generators, equipment suppliers and other investors.
Invested over AUS$300 million on projects and aims to leverage a further $550 million from other sources (industry and government).
At least AUS$255 million committed for new projects out to 2027.
![Page 19: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/19.jpg)
Australian CCUS Projects
19
Gorgon ProjectOperating - 3.4 to 4 Mt
South West Hub Project
CarbonNet FlagshipProject Development &
Commercial EstablishmentAppraisal underway
CTSCoFID for Construction 2020
Glencore/Uni of Queensland/ANLEC
Commercial Location Data
CO2CRC Otway PilotPhase 3
CallideOxyfuel demonstration
completed
Precompetitive Exploration
Ongoing, NSW and Qld
![Page 20: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/20.jpg)
• Since 2007 committed to 14 projects, including:
– Capturing CO2 at Callide Oxy-Fired coal power plant
– Sequestering 80,000 tonnes of CO2 in Otway Basin in Victoria
– Groundwork for a CCUS Hub in the Surat Basin Queensland including CTSCo injection trial, UQSDAAP data acquisition
– Advanced the understanding of how to deploy Ventilation Air Methane (VAM) abatement technology safely, and
– Contributing to the international R&D effort.
20
Oxyfuel demonstration (pictured at left) at the Callide Power Station, Queensland, CSEnergy
Otway project injection, Victoria
![Page 21: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/21.jpg)
Project portfolio over the next 10 years
COMMITTED A FURTHER AUS$255 MILLION OUT TO 2027
ONGOING PRIORITIES• Post Combustion Capture at a commercial operation in
Queensland• Demonstrated storage in Surat Basin• Abatement of fugitive emissions from coal mines
ONGOING PROJECTS• Queensland Surat Basin CCUS Hub• NSW Storage – Coal Innovation NSW• Ongoing R&D through:
– CO2CRC– ANLEC R&D
21Glencore’s CTSCo well in the Surat Basin
Methane explosions in coal mining studies at Newcastle Institute for Energy and Resources , University of Newcastle, NSW
![Page 22: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/22.jpg)
We are also exploring new project options• Support the development of prospective emerging capture technologies
– Prospective technologies include:• NOx and SOx tolerant solvents • Allam Cycle
• Carbon capture and utilisation:– Study the possibilities for enhanced oil recovery in Australia– Specific consideration of EOR associated with the Surat Basin Hub– Utilisation and Recycling of Carbon for other purposes
• Other– Black coal to hydrogen with CCUS – cost effective method of producing H2
– Support the development of low emissions technologies using metallurgical coal– Education to increase understanding and awareness of:
• Low emissions coal power technologies and
• Their role in supporting increased renewable electricity supplied into grid electricity.22
![Page 23: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/23.jpg)
New Deep Storage Carbon Huband Enhanced Oil Recovery Potential
Surat Basin
![Page 24: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/24.jpg)
Queensland Surat Basin CCUS Hub - Why?
24
1. CO2 Sources in the region:• 3 supercritical coal power stations and CCGT
• LNG and ethanol production with CO2 separation
• Potential Coal to Liquids (CTL) production facilities
2. Transport System:• Extensive existing pipeline easements
3. CO2 Users:• Various end of life oil fields – EOR potential
4. Storage Geology:• Has highly prospective geology for CO2 storage,
• Has exploration permits for GHG (EPQ’s 7 – 14),
• Has enabling legislation for CO2 storage – Qld Greenhouse Gas Act 2009,
![Page 25: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/25.jpg)
Strategic context of Capture Demonstration & the Queensland Carbon Hub
Coal Power Carbon Capture Demonstration
National EOR
Enhanced Oil
Recovery
Remove existing
emissions
QLD Carbon
HubNew HELE
Hydrogen
HENE
![Page 26: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/26.jpg)
Enhanced Oil Recovery• COAL21 commissioned a study for potential
enhanced oil recovery in Australia through Geoscience Australia
– Specific consideration of EOR associated with the Surat Basin Queensland Carbon Hub
– Utilisation of CO2 for other purposes (e.g. food and beverage production)
– CO2-EOR can be optimized to store 1t of CO2 per 1.1bbls of oil produced.
– Results in a net negative emission of 0.52t of CO2 per bbl of oil produced through CO2-EOR.
– Increases fuel security, employment, royalties, federal taxes and lowers emissions.
26
![Page 27: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/27.jpg)
Queensland Surat Basin CCUS Hub - Why?
27
Contribution of Hub• Emissions solution
• Energy security and grid stability
• Continued value from mining
• Affordable power
• Direct expenditure by project contractors
• Jobs and lifting local skills base
• Government royalties
![Page 28: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/28.jpg)
USC + CCUS, Hydrogen
![Page 29: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/29.jpg)
Estimated long run marginal cost of new generation (2017)
0
100
200
300
400
500
600
700
800
900
1000
USCblackcoal
Variablewind
USCblack
coal withCCS
CCGT Variablesolar PV
Wind &CCGT
CCGTwithCCS
Solar &CCGT
Wind &CCGTwithCCS
Solar &CCGTwithCCS
OCGT Wind &battery
Solar &battery
A$/M
Wh
Source: Solstice Development Services, Prospects for a HELE USC coal-fired power station, 2017
![Page 30: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/30.jpg)
Australia’s National Energy Market - Retirements
30
Liddell Power Plant announced as closing in 2022
Gladstone Power Plant 50 years old in 2026
Yallourn Power Plant 50 years old in 2032
![Page 31: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/31.jpg)
Locations for future USC + CCUS
31
Oaklands Basin
Surat Basin
Gunnedah Basin
Latrobe Valley
Surat, 700MW, Air cooled $47-52MWh (LRMC)
Surat + 45% CCUS $70-76/MWh
Surat + 90% CCUS $95-102/MWh
Oaklands 1400MW, Air cooled $60/MWh
Oaklands + 90% CCUS $126/MWh
Gunnedah , 1400MW, Air cooled $66/MWh
Gunnedah + 90% CCUS $134/MWh
Latrobe 1400MW Wet cooled $67/MWh
Latrobe + 90% CCUS $151/MWh
![Page 32: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/32.jpg)
Hydrogen from coal• Passenger vehicles = 10% of Aust emissions, road transport over 15%. • Hydrogen vehicles only emit water, while hydrogen reduces emissions from
electricity generation, heating and chemicals production.• Hydrogen from black coal with CCUS: 3 times cheaper than grid-connected
electricity and 13 times cheaper than renewable energy.• A significant new export opportunity to Japan, China, Korea and EU.
32
Technology Levelised Cost of Hydrogen - $/kg H2
Base Case Polymer Electrolyte Membrane (PEM)
6.08-7.43
Base Case Alkaline Electrolyser 4.78-5.84
Base Case SMR + CCUS 2.27-2.77Base Case Black Coal Gasification + CCUS
2.57-3.14
Best Case Black Coal Gasification + CCUS
2.02-2.47
Best Case Brown Coal Gasification + CCUS
2.14-2.74
Note: Figures sourced from National Hydrogen Roadmap – Pathways to an economically sustainable hydrogen industry in Australia, CSIRO, 2018, pp 78-83
![Page 33: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/33.jpg)
Research & Development
Australian National Low Emissions Coal (ANLEC) R&DObjective• Broad based applied R&D program
covering key CO2 capture and geological storage technologies in support of demonstration projects
CO2CRCObjective• To develop CCUS as a socially, technically
and commercially viable option
33
![Page 34: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/34.jpg)
Pathway and Policy – sustainable developmentMacroMore holistic approach - industry policy approach includes:• Energy• Emissions reduction• Industrial Processes
– Coal, gas, hydrogen , EOR, cement, steel, chemicals…
• Regional and national benefits– Royalties– Continued employment– New industries (eg hydrogen)– New skills base
34
Micro2017 Roadmap recommended: • CO2 storage characterisation • Legal and regulatory capacity • Monitoring international CCUS deployment• Techno-economic assessments • Engagement to achieve public acceptance. 2019 policy advocacy themes• Utilisation – EOR• Alternative uses – eg hydrogen• Technology neutral approach to emissions• Employment
![Page 35: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/35.jpg)
COAL21 – a small part of reaching SDGs
35
• Industry collaboration model to deliver low emission technology
• Builds on many companies’ knowledge and strengths
• Leverages support from governments• Link between sustainability and long term
company value• Demonstration of technology builds
confidence in industry• Education and awareness from technological
demonstration• Coal seen as a sustainable building block of
society
![Page 36: COAL21 – Pathway for Lowering Emissions from Coal JCosgrave COAL21...COAL21 – Pathway for Lowering Emissions from Coal Josh Cosgrave Director – Government Relations, COAL21 Ltd](https://reader033.vdocument.in/reader033/viewer/2022041605/5e33dd108a159b0e0f1d88c7/html5/thumbnails/36.jpg)
Hydrogen from coal• Passenger vehicles = 10% of Aust emissions, road transport over 15%. • Hydrogen vehicles only emit water, while hydrogen reduces emissions
from electricity generation, heating and chemicals production.• Hydrogen from black coal with CCUS: 3 times cheaper than grid-
connected electricity and 13 times cheaper than renewable energy.• A significant new export opportunity to Japan, China, Korea and EU.
36
Note: Figures sourced from National Hydrogen Roadmap – Pathways to an economically sustainable hydrogen industry in Australia, CSIRO, 2018, pp 78-83