Australian Activities in Clean Hydrogen from Coal & Natural Gas

Dr John K Wright Director CSIRO Energy Transformed Flagship Program Energy Transformed Flagship

Outline

• Characteristics of “energy” in Australia • “Energy” responses • Clean Hydrogen from Coal and Natural Gas • Close Energy Transformed Flagship

Australian Energy

• Plentiful reserves of high quality, available black and brown coal • Increasing proven gas reserves – natural gas and coal seam methane • Declining indigenous oil • High solar thermal, wind and hot rock potential • No nuclear power • Limited hydro power Cost – effective energy supply sector High GHG emissions intensity Awareness of the need for a “low emissions” response Energy Transformed Flagship

Energy Responses / Initiatives • National Research Priority – reduce and sequester carbon dioxide emissions from transport and stationary energy – The cooperative Research Centre program • the CRC for Coal in Sustainable Development • the CRC for Clean Power from Lignite

• the CRC for CO2 management – COAL21 – The Queensland Low Emissions Technology Centre – CSIRO’s Energy Transformed Flagship Program – National Hydrogen Study – Proposed Hydrogen CRC – Range of University R&D programs in production and storage of hydrogen – Australian membership of the CSLF and IPHE Energy Transformed Flagship

Hydrogen from Fossil Fuel Activities (1)

Main activity through COAL21 (Commenced March 2003)

• Partnership between the coal and electricity industries, federal governments and the R&D community • Objective to create a national plan to scope, develop, demonstrate and implement near zero emissions coal fired power Provides the umbrella organisation for the advancement of near zero emissions technology in Australia Effectively a long term plan for generation of hydrogen from Australian coal Energy Transformed Flagship

Hydrogen from Fossil Fuel Activities (2)

Organisations working with COAL21 • CCSD – providing coal gasification technology

• CO2 CRC – Capture and sequestration technology (from coal gasification and natural gas) • Queensland LET Centre – coal gas processing (gas cleaning, processing, separation) • The CSIRO Energy Transformed Program – works through – the CRCs and independently on aspects of CO2 capture,

CO2 sequestration, hydrogen production and applications The route to the hydrogen economy in Australia is likely to be dominated by fossil fuels Energy Transformed Flagship

Hydrogen from Fossil Fuel Activities (3)

Hydrogen Economy

s ? ct je o H distribution r 2 Increased hydrogen use l P system ia rc H2 car me om C Zero emission electricity IGCC

Improved fuel cells Effective integration of GTL Research H2 car CO2 capture & storage FutureGen s Gorgon ct je CSS retrofit ro P Improved separation h Community acceptance rc Snovit a of geosequestration e In Salah es R Progress towards the hydrogen economy

Demo gasifier Enhanced CSM Pilot capture projects 2003 2010 2020 2030

Source: CO2 CRC Energy Transformed Flagship

Hydrogen from Natural Gas

Solar Thermal Water CO2 to disposal / sequestration

Fossil Fuel CO/H2/CO2 H2/CO2 H2 -fuel Solar (CH ) Water Gas Advanced 4 Thermal CO Shift 2 Power Fuel Recovery ~ Conversion Generation Reforming

CO + H O(l ) H + CO + 3 KJ • Fuel cells 2 2 2 • Gas turbines • Cogeneration etc water

CH4 + H2O(l ) + 250 KJ CO + 3H2 Solar hydrogen production for: Fuel cell electricity generation from hydrogen transport applications (eg hythane™) Hydrogen for refining of heavier crude oils Energy Transformed Flagship

Hydrogen from Natural Gas (2) Energy Transformed Flagship

Hydrogen from Natural Gas (3) Energy Transformed Flagship

Closing

• The main driver for hydrogen activities in Australia is GHG intensity reduction • The hydrogen agenda is likely to be initially controlled by the development of low emission fossil fuel development • The prospectivity for hydrogen production using renewable energy is high, but cost is a major barrier • International partnerships are being sought for coal to hydrogen and gas to hydrogen technologies Energy Transformed Flagship

Contact Information • COAL21 www.coal21.com.au • CRC for Coal in Sustainable Energy www.ccsd.biz • CRC for Clean Power from Lignite www.cleanpower.com.au • CRC for CO2 Management (CO2 CRC) www.co2crc.com.au • The CSIRO Energy Transformed Flagship Program www.energytransformed.csiro.au • The Queensland Low Emission Technology Centre [email protected] • The National Hydrogen Study www.industry.gov.au • Australian Institute of Energy http://www.aie.org.au/hydrogen_index.htm Energy Transformed Flagship

“Back-up” slides Energy Transformed Flagship

Who Are We?

“By igniting the creative spirit of our people, we deliver great science and innovative solutions for industry, society and the environment” Energy Transformed Flagship

What We Do – Divisional Research IT, Environment & Sustainable Agribusiness Manufacturing Natural Minerals & & Health & Services Resources Energy

ƒ Textile & Fibre ƒ Marine Research ƒ Minerals ƒ Food Science Technology Australia ƒ Entomology ƒ Exploration & ƒ Mathematical & ƒ Forestry & Forest ƒ Land and Water Mining Information Products Sciences ƒ Sustainable ƒ Petroleum ƒ Health Sciences Ecosystems Resources ƒ Molecular Science & Nutrition ƒ Atmospheric ƒ Energy Technology ƒ Livestock ƒ Telecommunications Research & Industrial Physics Industries ƒ Manufacturing & ƒ Plant Industry Infrastructure Tech. ƒ Australia Telescope National Facility

Multi – Divisional Flagship Programs

ƒ Healthy Country ƒ Agri-Food Top 5 ƒ Preventative Health ƒ Wealth from Oceans ƒ Light Metals ƒ Energy Transformed ƒ Climate ƒ Clean Coal Syndicate ƒ Secure Australia Energy Transformed Flagship

Who Are We? You may know us already… • CSIRO ranks in the top 1% of world scientific institutions in 11 of 22 research fields • 60% of our staff hold university degrees – >1800 doctorates – > 430 masters’ degrees • 6300 staff located at 65 sites – 3 overseas labs – 7 international locations • 3500 patents granted or pending • Citations per publication are 30% above world average • More than 163 companies are based on CSIRO intellectual property Energy Transformed Flagship

The Opportunity

350000 A $30b+ opportunity for new 300000 technology implementation 250000

GWh 200000

150000 Supply from Existing Plant Many 100000 existing Demand (ESAA) plants still 50000 operating in 2030

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Year Energy Transformed Flagship

Energy Tension

Energy Economy Environment Tension

• GDP growth • Cost, quantity, • Clean air • Competitive quality of supply • GHG emissions industry • Generation • Expanding efficiency exports • Fossil fuel usage

Energy Technology

Technology Roadmaps Clean, Internationally Competitive, Reliable and Secure Energy Services Energy Transformed Roadmap: Taking the emissions out of Stationary Energy and Transport

Short Term Medium Term Long Term Theme Goals (1 – 3 years) (4 – 9 Years) ( 10+ Years)

Development & reporting Update of model with feedback to R&D Optimum routes to Identification of Theme 1: of a National Energy strategy and energy policy the Hydrogen optimum energy Economy Energy model requirements pathways Futures

Cost effective electricity Theme 2: Feasibility of CO2 New IP in gas Facilitation / involvement Large scale meeting storage in coal strata / processing / CO2 in zero emissions – coal H2 from fossil Low Emission Australia’s GHG aquifers capture to H2 pilot plant fuels Electricity commitments

Series hybrid Intelligent transport / H2 Transport Mild hybrid vehicle Theme 3: development fuel cell cars innovations development Low Emission ITS Systems implemented meeting cost and Transport developed emission targets

Theme 4: Distributed Innovative waste heat Decentralised power Remote controlled, 80% Supply Low Emissions Generation utilisation IP with information efficiency heat / power / options solutions to GHG Distributed feedback cooling supply systems based on H Energy 2 emissions Energy Transformed Flagship

Sites for CO2 Sequestration Potential

Potential sites

Unproduced high CO2 gas field

Emission Node

* 102 sites analysed

* 65 proved viable CO2 storage sites * 22 sites not viable; 15 regional basin overviews

All Sites Examined by GEODISC Program Source: APCRC, GEODISC, Geoscience Australia Energy Transformed Flagship

GHG Emissions Sources 2000 52 50 2 Other 5 Nat Gas

6 Petroleum 40

38 Coal 30 Percent 20 18 14

10 7

3 3 2 0 Other Waste Energy Energy Forestry Industrial Transport Land Use, Stationary Stationary Agriculture (Electricity)

Source: AGO (2002) National Greenhouse Gas Inventory Energy Transformed Flagship

Annual Growth in GDP and Primary Energy Consumption

6

4 Economic Growth

2 Energy Consumption %

-2

-4 1977-78 1983-84 1989-90 1995-96 2001-02 2007-08 2013-14 2019-20 Energy Transformed Flagship

Industrial Electricity Cost

20 Comparison 18.6

15.9 14.9 15

11.5 11.0 10.3 10.3 9.8 9.8 9.7 9.6 9.4 9.4 9.2 10 9.1 8.9 8.4 8.1 7.8 7.7 6.8 6.7 6.7 6.4 6.2

5 3.1

0 Italy Italy Spain Korea Japan Poland Greece Taiwan Croatia France Ireland Finland Canada Hungary Belgium Portugal Germany Germany Argentian Singapore Netherlands South Africa AUSTRALIA Luxembourg Czech Republic Czech Republic United Kingdom United Uinted States (NC) Energy Transformed Flagship

Growth in energy consumption PJ 2000 NSW Vic QLD 1500 WA SA Tas 1000 NT

500

1998 - 99 1999-2000 2004-05 2009-10 2014-15 2019-20

Source: ABARE Energy Transformed

Theme 2 Theme 3 Theme 4 Low Emission Low Emission Low Emission Electricity Transport Distributed Energy

Stream 1 Stream 2 Stream 1 Stream 2 Stream 1 Stream 2 Stream 3 Electricity Electricity Hydrogen Intelligent Distributed Waste heat Energy from Fossil from ready Transport generation utilisation management Fuels Renewable vehicle technologies Sources technology

Theme 1: Energy Futures

Stream 1 Stream 2 Stream 3 System Scenarios & Social & constraints Technology Environmental Diffusion Impacts