Low emissions power generation with carbon capture and storage moved closer today with Queensland's ZeroGen project being short-listed by the Federal Government for funding under its Clean Energy Initiative CCS Flagships Program.
The company is proposing to build a commercial scale baseload Integrated Gasification Combined Cycle (IGCC) with Carbon Capture and Storage (CCS) low emission coal power plant in Central Queensland by late 2015.
ZeroGen Chief Executive Officer, Dr Tony Tarr said ZeroGen was clearly now well placed to become one of the first commercial-scale IGCC with CCS projects in the world following today's announcement by Minister for Resources and Energy, Martin Ferguson.
ZeroGen is a project of world significance as part of the national and international collaborative effort to accelerate the deployment of low emission technologies.
The project is currently funded by its partners the State Government, Australian Coal Association Low Emissions Technologies Ltd (ACALET), and Japan's Mitsubishi Corporation and Mitsubishi Heavy Industries.
"The ZeroGen project ensures Queensland is a world leader in the development and deployment of this crucial technology. Our IGCC with CCS project will capture and safely store up to 90% of CO2 emissions, while at the same time support a sustainable future for Australia's $24 billion coal export industry and the 130,000 jobs it supports," Dr Tarr said.
"CCS has been identified by leading organisations such as the International Energy Agency, Intergovernmental Panel on Climate Change, WWF-Australia and the Global CCS Institute as being essential in lowering greenhouse gas emissions globally," Dr Tarr said.
"It is widely understood that if several large scale integrated CCS demonstration projects are not developed within the next decade, there is a real possibility we won't be able to deploy the technology in time to prevent greenhouse gas emissions from exceeding reasonable limits."
The Carbon Sequestration Leadership Forum, of which Australia and Japan are members, recently recognised the project as one of the most important Carbon Capture and Storage projects in the world and it is one of 10 new projects now added to the existing CSLF portfolio of Research and Development projects.
The International Energy Agency's 2009 World Energy Outlook predicts fossil fuels will account for 77% of the increased global demand for power between 2007 and 2030. Demand for coal will grow by 53% in that time.
Dr Tarr said projects like ZeroGen are essential in enabling the rapid and widespread commercial deployment of low-emission technology around the world, including emerging countries such as China and India.
ZeroGen supports a portfolio approach to achieving Australia's energy targets and meeting global demand for energy, a portfolio that includes a combination of low-emissions coal, renewables and energy efficiency.
"Importantly, projects like ZeroGen will play a critical role in such a portfolio, significantly reducing technology risks and costs to pave the way for rapid commercialisation of low-emission coal fired power plants in Australia and around the world."
ZeroGen's CO2 drilling exploration program is continuing in Central Queensland and is the most advanced of its kind in the world.
"Our team in the Northern Denison Trough has drilled more than 50% of all the wells in the world for the specific purpose of geological storage of CO2," Dr Tarr said.
"Test injections of CO2 are now underway and results to date have been encouraging and have confirmed the geology's ability to safely and securely store large volumes of CO2. Investigations are ongoing to determine the amount that can be stored cost-effecitvely."
An extensive prefeasibility study, to be completed mid 2010, is examining the potential for the power plant to be built in the Central Highlands region, close to coal supply, existing infrastructure and a secure storage site for its CO2 emissions.
An Environmental Impact Study will also be completed as part of the feasibility process and on current timelines all studies are expected to be completed by September 2011. An extensive community consultation program will be carried out throughout these studies.