Ignite Energy Resources - IER A convergence of nature and technology Transforming low-energy resources into high-value cleaner fuels & fertiliser

Transcription

1 Ignite Energy Resources - IER A convergence of nature and technology Transforming low-energy resources into high-value cleaner fuels & fertiliser

2 EL 4416 a world-class lignite resource Exploration Licence (EL) onshore Gippsland Basin, Victoria, Australia approx 3700 km 2 and billion tonnes (Bt) of brown coal in place Independent Expert Reports - JORC standard ~ 18 Bt of lignite in three deposits amongst the cleanest coal in the world low ash, sulphur, salts, etc

3 The Strzelecki Arc EL 4416

4 Low Rank Coals Comparative Quality Gelliondale Stradbroke EL 4416 lignite Low sulphur Low heavy metals Low salts Low ash

5 What are two of the main challenges for lignite resource owners going forward? + H2O CO2

6 Introducing IER s 4th State Process depolymerises lignite with super critical water IER s Hydro Thermal Reactor (HTR) technology (4 th State Process TM ) acts like Nature s Scissors to depolymerise lignite by cutting it into oils, upgraded coal products and usable water HTR turns lignite s greatest weakness - its high moisture content - into a commercial strength The 4 th State Process TM does in minutes, with super critical water and catalysts, what nature does in hundreds of millions of years

7 Properties of super critical fluids Viscosities and diffusivities similar to gases Densities comparable to liquids Unusual solvent properties dissolves polar materials similar to light hydrocarbon Environmentally friendly

8 De-Polymerisation - working with nature Natures scissors to de-polymerise lignite Using water as the agent of change

9 IER s commercial pilot plant

10 IER s commercial pilot plant

11 Hydro thermal reactor Reactor has built in flexibility to allow for final product tuning

12 Process control Control system Screen shot

13 Process control

14 Modular approach - able to ship anywhere in the world Raised 2 Metres Boiler Bulker bag unloading, batch weighing Slurry Preparation Steam Heating Heat Exchanger Modular Reactor

15 Major Milestone IER signs MOU with TRUenergy IER has signed (July 2009) an MOU with the major Victorian based utility, TRUenergy, to place its first 20,000 tonnes per annum HTR module on their existing brown coal mine at the Yallourn Power station in the Latrobe Valley - to feed into their power station TRUenergy is a wholly owned subsidiary of China Light and Power, generating 1480 MWe (~14 Mt pa CO2 emissions) The project is envisaged to expand to 60,000 tonnes per annum TRUenergy will take the products from the project TRUenergy (China Light and Power) will be seeking a technology licensing agreement This brown coal (lignite) field is consistent with IER s EL 4416

16 TRUenergy Generating Plant -Yallourn

17 Potential location of IER 60,000 t/a plant (50m x 100m)

18 IER s value proposition to a lignite (brown coal) resource owner Lignite (brown coal) (hydrophilic loves water) 1 tonne (as mined 50% water content) IER s HRT upgrading process Oils ~ 1 barrel Upgraded coal (PCI-equiv) (hydrophobic dislikes water) ~ 0.3 tonnes Water ~ 0.5 tonnes Syngas & CO 2 ~ 0.04 tonnes

19 IER s value transformation IER s lignite + IER s 4th State Process TM + US SEC Resource Reporting = Re-valued lignite Key Asset 10% world s lignite Converts low-value lignite to high-value oil and coal Ignite technology: low capex/opex, low Co 2 emissions and usable water Other technologies: higher costs & emissions From 1 Jan 2010 non-renewable natural resource can be booked as oil & gas reserve based on reliable technology Significant World Oil Field JORC 18 Bt lignite conversion # At a 30% discount to the market based on a peer assessment **IER oil density of 1050 kg/ m 3 * boe: barrel of oil equivalent **14.6 B*boe oil # US$29.71 billion 5 Bt PCI coal # US$5.49 billion

20 Lignite based BioLogic fertiliser CO 2 sequestration - replacing chemical fertiliser Conversion of lignite to high-grade BioLogic fertiliser proven LawrieCo technology - with three existing factories Biological farming/fertilisation system (BFS) improves farm profits BFS already deployed on 300 farms over 300,000 hectares IER/LawrieCo JV to roll-out BioLogic fertiliser plants on EL 4416 IER s lignite uniquely suitable due to high humic/fulvic content close to port for national distribution and export existing high-value market for BioLogic fertiliser BioLogic fertiliser, blended from lignite with proprietary biology, catalyses crops & grasses to rebuild soil carbon & biological diversity Measured soil carbon increase min 0.15% pa (~15 tonnes CO2 per ha from ~50kg lignite application) 300 x carbon multiplier High carbon content soils are rich, brown, fertile, drought resistant, healthy soils

21 Greening brown coal IER s zero net emission strategy Australia s agricultural lands (~500m ha) have been degraded of soil carbon (average 3-4% down to ~1% being 150 to 200 Bt CO2e) equivalent to ~300 years of Australia s annual GHG output 1 M ha BFS farmlands min 15 Mt CO2 sequestered pa 0.2% increase in soil carbon on 5% of Australia s agricultural land equates to 500 million tonnes of CO2 sequestered BFS can offset Australia s fossil fuel emissions for many decades, at very low (arguably negative) cost of CO 2e CARBON BRIDGE

22 SUMMARY EL 4416 world scale energy resource IER Super-critical Hydro Thermal Coal-to-Oil technology, a world s first for lignite BioLogic Fertiliser sequestration a solution to removal of legacy CO 2