HYDROGEN AND CCS: A LOW EMISSIONS COAL OPPORTUNITY FOR VICTORIA - - PowerPoint PPT Presentation

HYDROGEN AND CCS: A LOW EMISSIONS COAL OPPORTUNITY FOR VICTORIA

Jane Burton, Director, Coal Resources Victoria

Department of Economic Development, Jobs, Transport and Resources (DEDJTR), Victoria, Australia

Monday 10 September 2018

Clean Coal Day Japan

• Victoria’s brown coal resources
• Statement on Future Uses of Brown Coal
• Low emissions opportunities for Victorian brown coal
• Hydrogen Energy Supply Chain (HESC) Pilot Project
• CarbonNet Project

OVERVIEW

VICTORIA’S BROWN COAL

• 430 billion tonnes in situ

brown coal

• 65 billion tonnes of

measured coal

• 33 billion tonnes of

potentially economic brown coal

COAL CHARACTERISTICS

Energy Value (net wet) 5.8 – 11.5 MJ/kg Energy Value (gross dry) 25-29 MJ/kg Overburden thickness 10 – 20 metres Strip ratio (coal:overburden) 0.5 / 5:1 Water 48 – 70% Carbon 65 – 70% Oxygen 23 – 30% Hydrogen 4 – 5.5% Ash <4% Nitrogen <1% Sulphur <1%

COAL STATEMENT

• Released in July 2017
• The Statement outlines the Victorian

Government’s position on new brown coal projects

• Decision making guidelines for new coal

projects

EMISSIONS STANDARD ACCESS TO COAL INDEPENDENT EXPERT PANEL ‘OPEN FOR BUSINESS’ APPROACH

0.45 t CO2- e/MWh or 0.3 t CO2-e/ tonne

• f coal to be

tested through a Regulatory Impact Statement (RIS) Preference given to projects sourcing their coal from existing brown coal

• mines. New licences
• nly to be granted

where proponents have been unable to reach supply agreement with existing miners Independent Expert Panel with commercial, technical and environmental expertise to support decision making The State will adopt an 'open for business' approach in supporting new investment and research

• pportunities in

projects using coal

KEY ELEMENTS

FUTURE PROJECTS AND PRODUCTS

• The Coal Statement supports the development of projects that seek to

use brown coal in a low emissions context

• Interest in hydrogen both within Australia and internationally is growing,

with a number of reports examining the opportunity published in recent months

• Opportunities exist for brown coal in the Latrobe Valley to be converted to

hydrogen, which when coupled with Carbon Capture and Storage (CCS) is in line with the Victorian Government’s Coal Statement

HYDROGEN ENERGY SUPPLY CHAIN (HESC)

• An opportunity for Australia to be at the forefront of the rapidly expanding

hydrogen industry

• Project to develop and trial a fully integrated supply chain for hydrogen

starting with production in the Latrobe Valley and ending with transport of that hydrogen to Japan

• Provides an opportunity for development of a domestic hydrogen market in

addition to the export market

7 6 5 4 3 2 1

• The HESC Pilot Project will demonstrate how the seven elements of a

supply chain work together

• Each of the elements includes technologies that are largely proven
• The Pilot Project is a critical first step in realising a commercialised

hydrogen production and export industry

HESC ELEMENTS

Gasification of brown coal in the Latrobe Valley Refining the gas to produce hydrogen Transportation Liquefaction Storage and loading Liquid hydrogen shipping Unloading and storage in Japan

THE BENEFITS FOR VICTORIA

CCS – AN ENABLER

CCS – A GLOBAL AND NATIONAL PERSPECTIVE

• Intergovernmental Panel on Climate Change (2015)
• 138% more expensive without CCS to meet COP21 Paris targets
• Commonwealth Energy White Paper (2015)
• Acknowledges the opportunity for hydrogen from brown coal
• Mission Innovation (2017)
• 22 national and EU committed to accelerating clean energy – including CCS
• Global Carbon Capture and Storage Institute (2017)
• 2017 Global Status report: 22 large-scale facilities underway
• CSIRO
• 2015 National Outlook to 2050: CCS an important opportunity for Australia
• 2017 Low Emission Technology Roadmap: CCS and hydrogen are valid technologies
• 2018 Hydrogen Roadmap

CLIMATE CHANGE COMMITMENT

CCS technology could support emissions reduction action across multiple pillars including from industrial processes such as gas processing, refineries and chemical manufacturing.

CARBONNET

• Investigating the feasibility for

a commercial-scale, multi- user CCS network in Gippsland, Victoria, Australia

• Jointly funded by the

Australian and Victorian Governments to 2020

• Significant research

investment to support CarbonNet e.g., ANLEC R&D

• CO2CRC is CarbonNet’s lead

research organisation e,g., Commonwealth EIF assets

CARBONNET – CURRENT STATUS

Project Development Procurement Construction Risk & Uncertainty Feasibility Commissioning Concept Time Risks and uncertainty decreases as project progresses Funding Commitments increase as project certainty increases Financing

We are here

Funding Committed High Low 100% 10%

• CarbonNet storage site appraisal activities:
• marine seismic survey
• offshore appraisal well
• Stakeholder and community engagement:
• raising awareness and confidence in CCS
• GipNet (EIF) validating environmental monitoring technologies:
• CO2CRC/CSIRO/UoM/UoW/ANLEC R&D
• onshore and offshore
• Commercialisation Pathway
• Declaration of Storage
• Injection Licence
• Investment facilitation

CARBONNET – NEXT STEPS

SUMMARY

• Victoria, Australia is home to a world class brown coal resource
• Opportunities exist for utilisation of the brown coal resource to create a

range of low emissions products such as hydrogen

• The HESC Pilot Project provides the opportunity for Victoria to be at the

forefront of the rapidly growing hydrogen industry

• Carbon Capture and Storage is a critical element in meeting emissions

reduction targets

• The close proximity of the Latrobe Valley’s coal resource to geological

carbon storage sites offshore in Bass Strait is a competitive advantage for Victoria

QUESTIONS?

E: jane.burton@ecodev.vic.gov.au