Diesel option Hope of futureHave your say » Peter Foley| 2nd May...

Diesel option Hope of future

Have your say » Peter Foley|
2nd May 2013 6:00 AM


NEW Hope says it is looking to the future by building a coal to diesel plant at the company's coal mine at Jeebropilly near Amberley.

The New Hope Group says it is building "a small-scale coal to liquids trial research and development plant at Jeebropilly".

A New Hope Group spokesman said the "proof of concept plant was designed to test leading edge CTL technology to determine if it could provide an alternative, sustainable and cost-effective source of diesel fuel".

"New Hope expects to commission its first trials at the Jeebropilly CTL plant in the fourth quarter of this year," the spokesman said.

"It will process coal at a rate of about one tonne per hour and we expect it will synthesise up to about 300 litres of diesel for each tonne of coal which will be used by its mining operations.

"As a 'proof of concept' investigation aimed at determining the sustainability and viability of the new technology, this small scale project will assess and evaluate the performance of the CTL process. It has a carbon footprint equivalent to about four domestic houses."

He said capital expenditure on the CTL project over the past seven years was about $16 million and construction of the plant created about 25 jobs. He said the project was "part of the New Hope Group's planned long-term objective of establishing niche-focussed, small-scale and cost-effective projects to support and 'value add' to small coal and gas reserves in other areas of Australia which otherwise might become stranded assets".

"If successful, future coal to liquid projects could offer an alternative fuel source for a wide range of industries - for example agriculture, trucking companies, rail haulage organisations and bus services," he said.

"These outcomes would provide social and economic benefits to the wider community, particularly in the future when demand for energy resources, such as oil, start to exceed supply."

Cr David Pahlke, whose division covers Jeebropilly, said the plant was approved by the previous state government without consultation with residents or the council.

"It was approved by the same Mines Minister, Stirling Hinchliffe, who gave approval for the Ebenezer mine even though the licence had been expired for two years," Cr Pahlke said.

"We had objections but it was approved about 12 months before the election and the council had no say in it."

http://www.qt.com.au/news/diesel-option-hope-of-future/1851678/