1. What is the ZeroGen project?
ZeroGen is a world-leading low emissions power project that will produce smarter, cleaner power from coal.
The project involves integrating the technologies of Integrated Gasification Combined Cycle (IGCC) and Carbon Capture and Storage (CCS) at commercial scale for the first time to produce low-emissions baseload coal-fired electricity.
The project will provide an IGCC power plant designed to generate 530MW (gross) of electricity and enable the capture, transport and storage of up to 90 percent of its carbon dioxide emissions.
2. Why is ZeroGen developing a technology that uses coal?
The International Energy Agency (IEA) predicts world energy demand could be 40 percent higher than 2007 levels by 2030 and demand for coal expected to grow by 53 percent by 2030. To meet this demand, fossil fuels are predicted to continue to be the dominant source of energy, accounting for 84 percent of the overall increase in demand by 2030.
Under this scenario, the deep cuts in greenhouse gas emissions called for by leading entities such as the Inter-Governmental Panel on Climate Change (IPCC) will not be achieved without the deployment of low-emission fossil fuel technologies. Further, the International Energy Agency says that CCS is an important part of the lowest cost greenhouse gas mitigation portolfio and without CCS, the overall costs to halve emission by 2050 will rise by 70 percent.
Coal is one of Australia's and the world's most abundant resources. By developing a low-emission technology that uses coal, ZeroGen will help to sustain the future of Australia's $55 billion export coal industry and the 130,000 jobs it supports, while at the same time demonstrating environmental leadership through developing a first-of-a-kind, low-emission technology that can be deployed around the world.
3. What are the benefits of the project?
ZeroGen will:
- develop and deploy a new generation, low-emission coal technology that is needed to achieve the deep cuts in greenhouse gas emissions required to mitigate climate change;
- accelerate the commercial uptake of Integrated Gasification Combined Cycle (IGCC) with Carbon Capture and Storage (CCS), identified as priority technologies for development;
- improve the environmental performance of coal as an energy source by demonstrating technology that will provide a source of baseload electricity, while capturing and safely storing CO2 emissions;
- develop specialist skills and expertise in IGCC with CCS technology, currently in global demand; and
- start the journey towards a hydrogen economy leading to further reductions in fossil fuel CO2 emissions.
4. How will the technology work and how much CO2 will it capture?
The integration of IGCC with CCS at commercial scale in the ZeroGen project has the potential to produce low-emission baseload electricity using coal that reduces greenhouse gas emissions by capturing, transporting and safely storing CO2 produced in the electricity generation process. At maturity, the project has the potential to capture up to 90 percent of CO2 emissions for full sequestration. Even at the initial capture rate of 65 percent that means the transport and storage of at least two million tonnes of CO2 each year, securely and permanently in deep underground sandstone formations. That is the equivalent of taking 600,000 standard motor vehicles off the road.
Integrated Coal Gasification Combined Cycle (IGCC) is a power generation process that integrates gasification with a combined cycle power plant. The process allows CO2 and other impurities to be separated and captured before combustion in turbines, thereby preventing their release into the atmosphere.
Carbon capture and storage (CCS) is a process of capturing CO2 from a process gas stream. Once captured, the gas is compressed and transported to locations with suitable geological formations for safe long-term storage (a process known as geosequestration).
5. Has this technology ever been used before?
IGCC and CCS are established technologies in their own right, but have never before been integrated for power generation.
CCS is a well-established technology that has been used in the oil and gas recovery industries for over 50 years.
IGCC plants currently exist in Japan, Europe, the USA and China, however none of these existing IGCC plants incorporate CCS.
ZeroGen's world-first integration of these technologies will produce low-emission electricity by capturing and safely storing carbon dioxide.
6. Why is ZeroGen moving directly to a commercial-scale plant and no longer building the demonstration plant?
The purpose of ZeroGen is to demonstrate the integration of IGCC with CCS for electricity production, to achieve a reduction in greenhouse gas emissions and to accelerate the uptake of the technology in Australia and around the world.
The rapidly advancing timeframes for the commercial deployment of low-emission coal technologies led project stakeholders to express a strong desire to accelerate ZeroGen's demonstration of IGCC with CCS technology at commercial-scale.
Following discussions with project stakeholders, an opportunity emerged to move directly to development of the commercial-scale facility. ZeroGen entered into discussions with Japan-based Mitsubishi Corporation (MC) and Mitsubishi Heavy Industries (MHI) to provide IGCC technology and CO2 capture for the project's power plant.
The provision of technology from MHI - a world leader in IGCC technology - played a crucial role in reducing technology development risks for the project, hence allowing it to proceed directly to commercial scale without the need for the smaller demonstration plant.
7. How much is the project going to cost?
The exact cost of the commercial-scale plant will be finalised as part of the feasibility study, but is estimated to be more than A$4.3 billion.
8. How will the project be funded?
Funding partners for the pre-feasibility study included the Queensland Government, the Australian Government, ACALET and funding to flow from the Mitsibushi Corporation and Mitsubishi heavy Industries.
9. Where will the project be located?
ZeroGen investigated suitable sites for the commercial-scale plant as part of the pre-feasibility study, which was completed in July 2010.
The power plant location will be determined by proximity to suitable resources such as infrastructure, sequestration sites, access to water, coal and electricity grids.
The CCS site will be determined based on the presence of suitable geology. Drilling of wells and test injections were carried out in Central Queensland to identify suitable geosequestration sites. To date, ZeroGen has been drilling in Central Queensland and has also applied in June 2010 for additional tenements in the Surat and Galilee Basins as part of a tender process initiated by the Queensland Government.
10. What other organisations is ZeroGen working with?
ZeroGen's project partners include: the Queensland and Australian Governments, ACALET, Mitsubishi Corporation and Mitsubishi Heavy Industries (MHI).
Royal Dutch Shell also supports ZeroGen's CO2 storage exploration program.
ZeroGen has established world class partnerships that will deliver a world class project. In addition to the significant value the partnerships with Mitsubishi and Royal Dutch Shell bring to the project, ZeroGen's technical and engineering capacity is also evidenced by its engagement of such leading consultants as the US based Fluor and its extensive experience in carbon capture and the petrochemical and power generation sectors, Hatch with its extensive experience in CO2 pipeline construction and maintenance in the USA and Canada, and the expertise of Wood Mackenzie, RLMS, AECOM, ROAM and 4T in Australia in the areas of water, land management, corridor planning, power transmission and forecasts, coal transport and coal market analysis.
ZeroGen is proactively sharing knowledge and learnings with a number of national and international organisations through its membership of and collaboration with such bodies as the Global CCS Institute, Carbon Sequestration Leadership Forum, IEA Greenhouse Gas Program, CO2CRC, CSIRO, Geoscience Australia, Japan's Central Research Institute of Electric Power Industry (CRIEPI), the National Low Emissions Coal Council, Queensland Clean Coal Council, The University of Queensland, Electric Power Research Institute (EPRI, USA) and The Climate Group.
11. How many jobs will ZeroGen create?
The commercial-scale plant will provide a significant boost to the local economy through the creation of at least 2,000 jobs during construction, and 200 jobs in the operational phase.
12. What are the project timelines?
The pre-feasibility study for the commercial-scale plant was completed in July 2010. A feasibility study is expected to be completed by September 2011.
It is envisaged the commercial-scale plant will commence operations in 2015 and be fully operational in 2016.
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Pre-feasibility study completion
Feasibility study completion
Plant operational
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July 2010
September 2011
late 2015
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13. How can I get more information?
Download one of our project Fact Sheets.
For enquiries relating to ZeroGen Pty Ltd or its projects please contact:
Phone: 61 7 3335 7497
Fax: 61 7 3368 2526
Post: PO Box 1633 MILTON QLD 4064
Reply Paid 1633 MILTON BC QLD 4064
Email: info@zerogen.com.au