COAL TO LIQUIDS PLANT

In 2009 Coalworks signed a strategic alliance with US based Synthesis Energy Systems Inc. (SES) to conduct a feasibility study for a coal to petrol plant. The alliance would facilitate licences of the technology required for the plant. SES recently constructed and now operates a gasification plant in China using clean coal technology. As background to this alliance, Coalworks commissioned International Engineers Uhde Shedden to conduct a pre feasibility study (PFS) for the construction of a clean coal plant at Oaklands.

Past reports conclude that Oaklands coal is remarkably suitable for gasification where coal is converted to synthetic natural gas (syngas) for power or to upgrade to value added products. Gasification is a key technology for lower emissions coal because in converting the coal to syngas carbon dioxide can be captured in readiness for sequestration. Accordingly, the PFS considered 5 coal process plants of which coal to gasoline using Exxon's Methanol to Gasoline (MTG) technology was the most robust. The strategic alliance envisages SES arranging a licence from ExxonMobil of its MTG technology. Such a CTL plant would involve three major technologies to process the coal in three major steps:

(i) Coal is fed into a gasifier to create syngas;
(ii) Syngas is then reformed into methanol;
(iii) Methanol is then converted by an MTG module to gasoline;

Each component of the plant, including the three major technologies, is a commercially proven technology. The advantages of such a plant are:

• Coal is greatly upgraded in value to gasoline for fuel use
• Gasoline product can be stored in tanks and transported by rail;
• Gasoline is an excellent saleable product with strong markets and pricing
• Methanol can also be produced, stored in tanks and sold
• CTL Plant employs clean coal technology to reduce pollutants
• CTL Plant can take advantage of future rises in oil price
• CTL Plant has potential for long term profitability through large coal resource

Key factors supporting development of such a plant at Oaklands are:

• Availability of large quantity of low cost coal suitable for gasification
• Landowner strategic alliance allows flat site for CTL plant
• CTL plant is not dependant on transmission or gas infrastructure
• Rail line provides transport line to ship gasoline to market
• Ample water available
• Proximity of highly skilled workforce in regional centres to service plant