ALTONA Energy's Arckaringa coal-to-liquids project has the potential to make SA self-sufficient in diesel
03/05/2011
UK-listed Altona is developing the $3 billion-plus Arckaringa project with China National Offshore Oil Corporation (CNOOC), which owns a 51 per cent stake.
CNOOC and Altona representatives visited the site last week. The Chinese company has established an Adelaide office to progress the project, which is at the bankable feasibility stage (BFS).
Altona managing director Chris Schrape said the BFS had 24-36 months to run in which time the environmental and engineering aspects of the project would be addressed.
The project is envisaged to use an estimated 7.8 billion-tonne coal resource in far north SA, as the basis initially for an open-cut mine with a 15 million-tonne per year capacity. That would support an integrated coal-to-liquids plant and power plant, producing 560 megawatts of power.
Mr Schrape said the project had the ability to produce 10 million barrels of fuel per year about 90 per cent of SA's projected diesel demand up to 2030.
"The emphasis of the stage one work (on the BFS) is on mine design, environmental impacts, including ground water, also the supporting infrastructure that's going to be needed," he said. "That will run through this year and into next. Then you'll see stage one and two start to merge in 2012. Then work on the detailed side will continue into 2013."
Mr Schrape said that the project had the potential to be a key contributor to the state's diesel and power needs.
He said SA had much resources potential. All of the new projects needed power and fuel supplies.
"This is part of the solution," he said. "Where's South Australia going to get its power from? Where will all the diesel fuel come from to power all the trucks in the mines and run the economy? We have the capability of delivering exactly those things."
Technical director Peter Fagiano said a carbon price would not be an issue for the project as CO2 would be removed from the synthetic gas produced from the coal in the fuel production process.
"The plan has always been to capture carbon dioxide... from the gas, clean it up and pump it by pipeline to storage facility," he said.
Altona will present details of the project at today's Paydirt South Australian Resources and Energy Investment conference in Adelaide.