HRL propose $750m dual gas power plant for Victoria
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24 September 2009
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Australian-owned energy, technology and project development company, HRL Limited has submitted a proposal for a new $750 million Dual Gas Demonstration project near Morwell in Victoria’s Latrobe Valley, to begin construction next year.
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The commercial-scale demonstration project will use cutting-edge technology to slash greenhouse emissions by up to 50 per cent and water use by 70 per cent, compared with traditional coal-based energy generators in the Latrobe Valley.
Victorian Energy and Resources Minister Peter Batchelor said it was expected once complete the power station would produce the lowest emissions per megawatt hour for a coal-based power station in Australia.
HRL managing director Gordon Carter announced that a special purpose company Dual Gas Pty Ltd has been established by HRL to develop a power station project that will demonstrate new power generation technology at a commercial-scale site, planned to be operational and generating electricity in 2013.
Mr Carter said the Dual Gas Demonstration Project will generate up to 550 megawatts of power using syngas (synthetic gas from the drying and gasification of brown coal) and natural gas (as a start up and supplementary fuel).
“The project will demonstrate the integrated drying gasification combined cycle (IDGCC) technology at commercial scale.
“The IDGCC technology is a process that combines the pressurised drying and gasification of brown coal with gas turbine combined cycle power generation. It is expected to enable power to be generated from brown coal with reduced CO2 emissions intensity and water usage compared to existing Latrobe Valley brown coal fired power generation technology.
“The demonstration project has been designed to also enable the potential retrofit of CO2 capture technology when commercially viable,” he said.
The demonstration project has support from the Australian Government ($100 million from the Low Emissions Technology Demonstration Fund) and the Victorian Government ($50 million from the Energy Technology Innovation Strategy).
The CO2 emissions intensity of the demonstration project is expected to average 0.78 tonnes CO2 per megawatt hour over the life of the project. This is about 40% lower than the current Latrobe Valley brown coal fired power generation annual average CO2 emissions intensity of about 1.3 tonnes CO2 per megawatt hour.
The average CO2 emissions intensity of the demonstration project is also expected to be lower than any other coal-fired (brown or black coal) power station currently operating in Australia.
The demonstration power station, which will also use dry cooling equipment, is expected to use around 70% less water per megawatt hour than existing brown coal fired power stations in the Latrobe Valley.
Mr Carter said Dual Gas will lease a portion of the Energy Brix Australia Corporation Pty Ltd industrial site located at Morwell, for the independent development and operation of the demonstration project.
“Dual Gas has commenced the planning and environmental approvals process for the proposed demonstration project. Construction of the demonstration project is planned to commence in 2010, pending approvals.
“An announcement of the successful engineering, procurement and construction (EPC) contractor is expected in early 2010.
“The demonstration project will be a major infrastructure investment in Victoria and is expected to create up to 350 direct jobs during construction and about 35 direct operational jobs,” said Mr Carter.
Minister Batchelor said that more than 90 per cent of Victoria’s power comes from coal-fired electricity.
“We can’t turn coal off overnight,” he said.
“If we are serious about reducing emissions from energy generation, the solution needs to be a combination of developing new renewable energy sources and by making our traditional energy sources, such as coal, cleaner, through projects such as this.”
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