Low emissions opportunities 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 INDEPENDENT EXPERT PANEL ‘OPEN FOR BUSINESS’ APPROACH Independent Expert Panel to support decision making The State will adopt an 'open for business' approach EMISSIONS STANDARD ACCESS TO COAL Preference given to sourcing coal from 0.45 t CO 2 -e/MWh or 0.3 t CO 2 -e/ tonne of coal existing mines
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 CSIRO estimates that hydrogen production at commercial scales is likely to be most economic via the thermochemical pathway with CCS for some time ELECTROCHEMICAL THERMOCHEMICAL Between $4.78 and $7.43 / kg Between $2.14 and $2.74 / kg (CSIRO, National Hydrogen Roadmap , LCOH Base Case (CSIRO, National Hydrogen Roadmap , LCOH HESC Electrolysis Costs 2018) Commercial Project estimate, 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
Elements of the HESC Project Source: hydrogenenergysupplychain.com • 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
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 2019-2020 PLANT OPERATION OF PILOT For one year between 2020 and 2021 PLANT TOTAL PILOT PROJECT ~$500 Million VALUE COMMERCIALISATION Late 2020s DECISON
HESC Project Timeline Transportation 2017 - 2018 2018 - 2020 2020 - 2021 2020s Planning and Plant Pilot Technical approvals construction operations reviews • Reviews and further • Completion of Front • Construction of the • Operation of the work to understand End Engineering HESC Pilot Plant HESC Pilot Plant for the pathway to and Design Study due to commence in a one year period to commercialisation, 2018 and conclude develop and trial the with potential • Obtain relevant in 2020 supply chain planning, regulatory approvals commissioning and construction of a • Commence commercial plant engagement with subject to market community and key demand for stakeholders 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 offshore • Environment and regulatory approvals obtained • 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
Recommend
More recommend
