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
OVERVIEW • 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
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 5.8 – 11.5 MJ/kg Energy Value (net wet) Energy Value (gross dry) 25-29 MJ/kg 10 – 20 metres Overburden thickness Strip ratio (coal:overburden) 0.5 / 5:1 48 – 70% Water 65 – 70% Carbon 23 – 30% Oxygen 4 – 5.5% Hydrogen 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
KEY ELEMENTS ‘OPEN FOR BUSINESS’ EMISSIONS STANDARD ACCESS TO COAL INDEPENDENT APPROACH EXPERT PANEL Preference given to The State will 0.45 t CO 2 - Independent projects sourcing adopt an 'open e/MWh or 0.3 t Expert Panel their coal from for business' CO 2 -e/ tonne with existing brown coal approach in of coal to be commercial, mines. New licences supporting new tested through technical and only to be granted investment and a Regulatory environmental where proponents research Impact expertise to have been unable to opportunities in Statement (RIS) support reach supply projects using decision making agreement with coal existing miners
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
HESC ELEMENTS 4 5 3 6 1 2 7 Gasification of Refining the Liquid Unloading and Storage and brown coal in Transportation Liquefaction gas to produce hydrogen storage in loading the Latrobe hydrogen shipping Japan Valley • 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
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 We are here Funding Commitments Concept increase as project certainty increases Feasibility High 100% Project Development Risk & Uncertainty Funding Procurement Committed Risks and uncertainty decreases as project Financing progresses Construction Low 10% Commissioning Time
CARBONNET – NEXT STEPS • 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
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
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