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-emission baseload electricity.
2. Why is ZeroGen developing a technology that uses coal?
The International Energy Agency (IEA) predicts world energy needs could be 50 percent higher than 2007 levels 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 up until 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.
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 $24.4 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 by the Australian coal industry 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
- preserve the long-term viability of the Australian coal industry, currently worth A$24.5 billion (2008) in exports and supporting 130,000 jobs, into a carbon-constrained future
- develop specialist skills and expertise in IGCC with CCS technology, currently in global demand
- 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 technology has the potential to capture up to 90 percent of CO2 emissions for full sequestration.
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 and America, 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 approximately A$4.3 billion.
8. How will the project be funded?
Funding partners for the pre-feasibility study currently include the Queensland Government and Coal21 Fund.
Investment negotiations are ongoing with a range of other potential funding partners, including the Australian Commonwealth Government, overseas governments and international corporate investors.
9. Where will the project be located?
ZeroGen will investigate suitable sites for the commercial-scale plant as part of a pre-feasibility study, due for completion in June 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 will be carried out in Queensland to identify suitable geosequestration sites. To date, ZeroGen has been drilling in Central Queensland and has found a site with potential to store CO2 at commercial-scale (that is, more than 60 million tonnes of CO2).
10. What other organisations is ZeroGen working with?
ZeroGen's project partners include: the Queensland State Government, the Australian Coal Association, Mitsubishi Corporation and Mitsubishi Heavy Industries (MHI).
Royal Dutch Shell also continues to support ZeroGen's CO2 injection program as part of its global efforts to develop and deploy carbon capture and storage technology.
A number of other organisations also provide a range of different services to the project.
ZeroGen has also been endorsed by a number of leading national and international entities, including: WWF-Australia, CFMEU, World Coal Institute and the Electric Power Research Institute.
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 is expected to be completed by June 2010. Following the completion of the pre-feasibility study, a feasibility study will commence, which 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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June 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