Australian Future Energy Pty Ltd., (AFE) Brisbane, has announced that its proposed Gladstone Energy and Ammonia Project (GEAP) has been declared a Co-Ordinated Project by the Queensland Co-Ordinator General. The decision will help streamline approvals and fast-track delivery of the project, according to Queensland Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick. A coordinated project approach also means that all the potential impacts and benefits of the project are considered in an integrated and comprehensive manner.
The next step is preparation of draft terms of reference by the Coordinator-General who will then invite community comment on the matters to be investigated in the environmental impact statement (EIS).
The GEAP is an above-ground coal-gasification facility that will be located in the Gladstone State Development Area (GDSA) in Queensland. The proposed project will process 1.5 million mt/y of low-quality coal sourced from currently operating mines in Central Queensland, to produce up to 330,000 mt/y of anhydrous ammonia, and up to 8 petajoule (PJ) of pipeline quality gas for Australia’s East Coast domestic gas market. In addition, the proposed project will generate approximately 90 MW of electrical power, with approximately 25 MW of this being available for export to the local domestic grid.
The ammonia and gas produced will then be used by major industrial users, including those focusing on agriculture, the mining industry and advanced manufacturing.
While ammonia is produced elsewhere in Australia, AFE says this is the first time that the proposed coal gasification technology will be used to produce ammonia in Australia.
The coal gasification technology to be utilized has been developed over the last approximately 20 years by Synthesis Energy Systems (SES), Houston, a Nasdaq-listed company, which holds approximately 40 percent of the issued capital in AFE.
AFE says the coal gasification technology is commercially proven and is operating at 5 commercial operations with 13 gasifiers in Asia. The largest of those operations is currently producing 300,000 mt/y methanol and is in the process of expanding that operation to 1 million mt/y methanol based on the SES technology.
The peak construction workforce for the project is put at 800-1,000 jobs during the two-year construction period and up to 250 full-time equivalent jobs for the 30-year operational period. It is estimated that a further 1,280 indirect jobs will be also be created during the operational phase, generating significant additional jobs for regional suppliers and contractors as well as increased employment opportunities for local communities.
The project is estimated to commence construction by mid-2020, with the first ammonia and gas production proposed in mid-2022.
The project’s associated infrastructure including a coal conveyer, electricity and gas pipeline will be built with the GDSA. The GDSA, first established in 1993, is located in northwest Gladstone and contains a dedicated industrial development and materials transportation infrastructure and is strategically connected to road, rail and the Port of Gladstone. The site is already home to an Orica chemical manufacturing plant, Cleanaway Waste Management, Australia Pacific LNG, Santos Gladstone LNG and Queensland Curtis LNG. Other nearby industrials include Cement Australia, Queensland Energy Resources and Northern Oil Refinery.
AFE subsidiary Great Northern Energy Pty Ltd. (GNE) owns the Pentland Coal Mine Project, also in Queensland. Coal from this project is targeted for both export and for use in gasification, according to the company. GNE is currently finalizing the preparation of its initial advice statement for that project to the Queensland government for the development of the project for an initial 6 million mt/y of run-of-mine (ROM) coal operation, with allowance for expansion of the project for up to 9 million mt/y ROM coal operation.
In its first phase of operation, 4.5 million mt/y of coal is planned for export to Asian markets, with the balance of 1.5 mt/y for feedstock to a future proposed coal gasification project. It is anticipated, based on current planning, for the project to be operational in 2022. AFE says the Pentland project has a 266 million mt coal resource in place.