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Projects – Coal To Liquid & Power

  
     
  The Arckaringa Project – Coal To Liquid (‘CTL’) & Power

The Project ‘Base Case’ includes		  
     
 
dot a 10 Million Tonne Per Annum (MTPA) open cut mine at Wintinna
dot a CTL plant producing 10 Million Barrels Per Annum (MBPA) or 30 Thousand Barrels Per
  Day (KBPD) of liquid products, mainly zero sulphur diesel fuel
dot 560 MW of power for export
 
     
 

One tonne of Wintinna coal yields a barrel of liquids plus power and industrial products – a significant order of added value beyond supplying just coal for conventional power generation.

The Based Case combines two 15KBPD Phases over a 4.5 year construction period, with a further 2.5 year Phase 3 expansion potentially increasing plant capacity to 45 KBPD and 840 MW of export power as markets develop.

The supporting mine can be developed and expanded within these timeframes.  These Project parameters are based on pre-feasibility studies conducted by world class specialists in CTL plant and open cut mine design.

  
     
 
Project Parametres
Outputs Phase 1 & 2 combined Construction time Phase 3 Construction time
F-T Liquids (80% distillate, 20% Naptha 30 KBPD
or
10MBPA 		4.5 years 45 KBPD or
15 MBPA 		2.5 years

Export Power

560 MW (Included in above) 840 MW (Included in above
Coal 10 MTPA 2.5 years 15 MTPA 1 year
 
     
 

THE RIGHT PROJECT AT THE RIGHT TIME FOR SOUTH AUSTRALIA

 
     
 

At over $3 Billion, the capital costs of an integrated CTL and power plant are substantial and higher than conventional oil refineries, regardless of location. A successful CTL project therefore depends crucially on locational advantages to give it a competitive edge in operating costs and marketing. Several factors are converging to make South Australia and the Arckaringa region a particularly attractive location for a CTL and power project:

  
     
 
dot Political and economic stability, which is critical to the success of long life, high capital cost projects;
dot Abundant and technically suitable coal resources;
dot The Adelaide – Darwin rail and road links;
dot Growing markets for fuels and power, plus industrial process inputs such as sulphur, water and chemicals.
 
     
 

South Australia is host to a large number of new and expanding resource projects, fostered by a rapid increase in minerals exploration. At the same time, the State’s dependence on imported diesel is rising and available power supply is officially3 forecast to fall increasingly short of demand. In addition, regional centres in the north of the State and beyond are dependent on high cost power generated from imported diesel fuel.

 
     
 

The Arckaringa Project will be uniquely placed to

 
     
 
dot supply both fuel and power to new resources and industrial projects
dot be a catalyst for regional development and employment
dot enhance power supply to the State grid and the National Electricity Market
dot provide commercial grade sulphur and potentially a range of chemical feedstocks, such as naptha and nitrogen, to industry
dot supply water to the region from mine dewatering and plant processes, subject to appropriate environmental management and approval.
 
     
 

In 2007, the Project moves towards the fi nal feasibility stage. The first step will be to complete a fi eld drilling programme to update the Wintinna deposit to current JORC classification standards and to extract bulk samples for coal quality and process testing. Ensuing steps include CTL plant and mine design and cost optimisation and environmental and social impact studies. Amongst the challenges which will receive priority attention are the use and disposal of water in an area subject to water allocation approvals and the mitigation of greenhouse gas emissions. As indicated above, the CTL process and co-generation of power offer the potential for innovative and practical responses to these challenges.