SA’s Energy Bank
In November 2005, Altona acquired (through its wholly owned subsidiary Arckaringa Energy Pty Ltd) a 100% interest in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia including three coal deposits – Westfield (EL4511), Wintinna (EL4512) and Murloocoppie (EL4513). On the formation of the Arckaringa Joint Venture, Altona's interest in the exploration licences will be 49%. All three deposits lie close to, or across, the Adelaide to Darwin railroad and the Stuart Highway.
Containing more than 7.8 billion tonnes of coal (non JORC), the company’s Arckaringa coal deposits are effectively one of the world’s largest undeveloped energy banks, capable of conversion into clean liquid fuels, low cost power and high value industrial feedstock.
The world scale of this energy bank is demonstrated by the following comparisons with Australian and North Sea proven resources of oil (as transportation fuel) and gas. These comparisons assume a 50:50 ratio of coal converted to Liquid Fuels and Synthetic Natural Gas (SNG), two types of product that could be produced from Arckaringa coal using existing technologies.The Arckaringa coal resources are respectively 75% and 37% of Australia's proven reserves.
The Arckaringa coal resources are also respectively 28% and 29% of North Sea proven reserves.
Source:
Jacobs Engineering Process & Technology, Nov 2009
Altona’s current focus is the completion of a Bankable Feasibility Study (BFS) for an integrated Coal to Liquid (CTL) plant with a co-generation power facility.
The company’s prefeasibility studies established a base case Project comprising :
- An open cut mine at Wintinna producing 10 MTPA coal
- 10 MBPA liquid fuels (mainly ultra clean diesel)
- 1140 MW of power - 560 MW for delivery to the national grid
One tonne of Wintinna coal yields one barrel of liquids plus power and industrial products – a significant order of benefit beyond supplying coal for conventional power generation.
The base case combines:
- Two 15,000 barrel per day (BPD) phases over a 4.5 year construction period; and
- A further 2.5 year Phase 3 expansion potentially increasing plant capacity to 45,000 BPD 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 Parameters - Pre Feasibility Base Case
| Outputs | Phase 1 & 2 combined | Construction time | Phase 3 | Construction time |
|---|---|---|---|---|
| F-T Liquids (80% distillate, 20% Naphtha) | 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 |
Project Parameters – BFS
The BFS will determine the final project scope and product outputs, which may be varied from the base case outlined in the table above. For example the BFS will examine a 15 MTPA mine ahead of expansion to Phase 3 of the CTL plant, in line with the potential to market coal as well as F-T liquids.
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