Low emissions opportunities for Victorian brown coal The hydrogen - - PowerPoint PPT Presentation

Low emissions

• pportunities for Victorian

brown coal

The hydrogen opportunity and the CarbonNet Project

John Krbaleski Acting Head of Resources Department of Jobs, Precincts and Regions Victoria, Australia

Tuesday 10 September 2019

Coal Statement

• Released July 2017
• The Victorian

Government’s position on new brown coal projects

• Decision making

guidelines

Coal Statement – Key elements

ACCESS TO COAL INDEPENDENT EXPERT PANEL Preference given to sourcing coal from existing mines Independent Expert Panel to support decision making ‘OPEN FOR BUSINESS’ APPROACH The State will adopt an 'open for business' approach 0.45 t CO2-e/MWh or 0.3 t CO2-e/ tonne of coal EMISSIONS STANDARD

High-value, brown coal derived products

Hydrogen

• The Coal Statement supports the development of projects

seeking to use brown coal in a low emissions context

• Interest in hydrogen both within Australia and

internationally is growing

• Opportunities exist for brown coal in the Latrobe Valley to

be converted to alternative products, including hydrogen

Vision for a global hydrogen economy

• The Hydrogen Council, a global coalition of more than 50

companies looking to develop the hydrogen economy, including Shell, Honda, Toyota and Kawasaki, has set a vision for a global hydrogen economy by 2050

Source: Hydrogen Council; IEA ETP Hydrogen and Fuel Cells CBS; National Energy Outlook 2016

Hydrogen production pathways

THERMOCHEMICAL Between $2.14 and $2.74 / kg

(CSIRO, National Hydrogen Roadmap, LCOH HESC Commercial Project estimate, 2018)

CSIRO estimates that hydrogen production at commercial scales is likely to be most economic via the thermochemical pathway with CCS for some time

ELECTROCHEMICAL Between $4.78 and $7.43 / kg

(CSIRO, National Hydrogen Roadmap, LCOH Base Case Electrolysis Costs 2018)

Hydrogen Energy Supply Chain Pilot Project

• 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

• Each element includes technologies that are largely

proven

• The Pilot Project is a critical first step in realising a

commercialised hydrogen production and export industry

Elements of the HESC Project

Source: hydrogenenergysupplychain.com

HESC Project – Key statistics

PILOT PROJECT JOBS Hundreds across the full supply chain LOCATION AGL’s Loy Yang site in the Latrobe Valley STATE FUNDING $50 Million COMMONWEALTH FUNDING $50 Million CONSTRUCTION OF PILOT PLANT 2019-2020 OPERATION OF PILOT PLANT For one year between 2020 and 2021 TOTAL PILOT PROJECT VALUE ~$500 Million COMMERCIALISATION DECISON Late 2020s

HESC Project Timeline

Transportation

2017 - 2018 2018 - 2020 2020 - 2021 2020s

Planning and approvals Plant construction Pilot

• perations

Technical reviews

• Completion of Front

End Engineering and Design Study

• Obtain relevant

regulatory approvals

• Commence

engagement with community and key stakeholders

• Construction of the

HESC Pilot Plant due to commence in 2018 and conclude in 2020

• Operation of the

HESC Pilot Plant for a one year period to develop and trial the supply chain

• Reviews and further

work to understand the pathway to commercialisation, with potential planning, commissioning and construction of a commercial plant subject to market demand for hydrogen

Community and stakeholder engagement

Carbon Capture and Storage – an enabler

Intergovernmental Panel on Climate Change (2015)

• 138% more expensive without CCS to meet COP21 Paris targets

Mission Innovation (2017)

• 22 national and EU committed to accelerating clean energy – including CCS

Global Carbon Capture and Storage Institute (2018)

• 2018 Global Status Report: 23 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

COAG

• National Hydrogen Strategy – incl. role for CCS

CarbonNet

• CarbonNet is

investigating the feasibility for a commercial- scale, multi-user CCS network in Gippsland, Victoria, Australia

• Jointly funded by

the Australian and Victorian Governments since 2010

CarbonNet - Feasibility Study Options

CarbonNet Stage 3

We are here

Offshore Appraisal Well

• Informed by geotechnical

and geophysical investigations (2019)

• Offshore appraisal well in

Commonwealth Waters approximately 8km

• ffshore
• Environment and

regulatory approvals

• btained
• Community and

stakeholder engagement

Commercialisation Pathway

• Term sheet negotiations have commenced with

foundation customer

• Currently undertaking global market soundings
• Request for industry submissions in late 2019
• Work underway to secure asset through Declaration of

Storage and Injection licence

• Decision on commercialisation pathway in 2020

Questions

john.krbaleski@djpr.vic.gov.au