Arckaringa CTL a boon for SA: Altona
02/05/2011
ALTONA Energy believes its proposed $US3.5 billion coals to liquids plant in South Australia's Arckaringa Basin will provide long-term energy supply to the state.
Besides producing diesel for transportation fuel, Altona executive director Peter Fagiano said the plant could also augment existing grid electrical supply to meet growing power demand.
"The project's planned diesel production meets the forecast demand for South Australia up until at least 2030, easing the pressure on South Australia which currently relies on international imports and 'out of the state' supply of transportation fuels," Fagiano said during the Paydirt 2011 South Australian Resources & Energy Investment conference in Adelaide.
This was achieved by using South Australia's coals to produce diesel at the cost of about $US53 ($A48.20) per barrel of diesel based on current plant costings.
Fagiano said compared with international crude oil prices of more than $110 per barrel and allowing for another $15-20 for refining costs, meant "the development of the Arckaringa project looks attractive both in the medium and long term".
Altona plans to process 10 million tonnes of coal per year to produce 10 million barrels of diesel/naptha products while exporting 4.5 million megawatts of electricity.
The coal to liquids and power plant components are estimated to cost $2.99 billion while the mine facilities are expected to cost an additional $535 million.
China National Offshore Oil Corporation is funding a bankable feasibility study for the project in return for a 51% stake in the Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362) exploration leases held by Altona's wholly owned subsidiary Arckaringa Energy.