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Coal and the Commonwealth the Greatness of an Australian Resource

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Coal and the Commonwealth the Greatness of an Australian Resource Coal and the Commonwealth The Greatness of an Australian Resource Professors Peter Knights and Michael Hood (Editors) The University of Queensland, Brisbane, Australia October 2009 The University of Queensland The University of Queensland (UQ) is one of Australia’s premier learning and research institutions. UQ is a founding member of the national Group of Eight (Go8), an alliance of research-strong ‘sandstone’ universities, which collectively conduct 70% of all university research in the country. The University strives to achieve excellence in research and scholarship and to make a significant contribution to intellectual, cultural, social, and economic life at local, national and international levels. UQ supports a broad and comprehensive research profile, while investing strategically in select areas where we have developed a critical mass and internationally recognised strengths. Our six internationally significant research institutes are drawcards for an ever-expanding community of scientists, researchers and commercialisation experts. The University is involved in a further 118 centres throughout Queensland, and has one of the highest participation levels of any academic institute in Australia in the Cooperative Research Centres program. UQ is noted for supporting early and mid-career researchers, as seen in our commitment to research training; in 2008 we celebrated our 5,000th PhD graduation. Recent research highlights include: - Discovery of a cervical cancer vaccine (Gardasil ®, Cervarix ®), which is now available in more than 90 countries - UQ-developed Triple P (Positive Parenting Program), exported throughout the world - Development of a clean energy source from solar-powered bioreactors and micro-algae. UQ leads industry collaboration and research funding for Australian universities, and we continue to build our reputation as one of the top four research universities in nationally funded competitive schemes. The University has over 100 industry partners, as well as research collaboration agreements with around 50 universities and institutes in Australia and overseas. For more information on UQ research, please visit www.uq.edu.au/research. This document is printed on Sovereign – an FSC Mixed Source Certified paper, which ACKNOWLEDGEMENT ensures that all virgin pulp is derived from well-managed forests. It is elemental chlorine free bleached and is manufactured The editors would like to acknowledge the financial support of Peabody Energy in developing by an ISO 14001 certified mill. this study to enhance public understanding of the role of coal in Australia. TABLE OF CONTENTS Executive Summary 1 4.5 Regional development 66 Prologue 3 4.5.1 Moranbah case study 67 4.6 National development 68 1. Introduction 1.1 Coal powers the world 9 4.6.1 Economic growth and development 68 1.2 Where it all began: the Industrial Revolution 11 4.6.2 Social development 69 1.3 Coal – The fuel that made Britain a maritime nation 4.7 Growth of businesses 72 and made the Industrial Revolution possible 17 4.8 Contributions of the mining services industry 72 1.4 Coal – today is powering the industrial revolutions 4.8.1 Mining technology and services 72 in many emerging countries and is a key fuel for 4.8.2 Banking, finance and insurance many developing countries 20 services sector 73 1.5 References 22 4.9 References 74 2. Coal in Australian History 5. Australian Coal Driving International Development 2.1 Captain Cook to convicts 23 5.1 Introduction 77 2.2 Industry and development 27 5.2 Global coal production and consumption 78 2.3 Gas and lighting 30 5.3 Global coal reserves and production 79 2.4 Steamships and coaling stations 31 5.4 Global coal trade 86 2.5 Railways 33 5.5 Australia and the global coal market 88 2.6 The electric telegraph and electricity generation 34 5.6 Australian coal powering Japan 90 2.7 Steel cities: Newcastle and Port Kembla 36 5.7 Australian coal powering Korea 92 2.8 Labour relations and unionism 38 5.8 Australian coal and Indian steel production 93 2.9 Health and coal mining 41 5.9 Australian coal powering the future of China 96 2.10 Post World War II and Queensland coal exports 41 5.10 Australian coal and the future 97 2.11 Replacing the traditional uses of coal 43 5.11 References 99 2.12 References 44 6. Coal Mining and Sustainability 3. Coal and the Australian Economy 6.1 Working towards a zero incident workplace 100 3.1 Australia: Built on the Miner’s Back 46 6.1.1 Case study: The coal industry addressing 3.2 Overall economic impact 49 operator fatigue 105 3.3 Coal’s contribution to Australia’s economic prosperity 51 6.2 Comparisons with other industries 106 3.4 Supporting infrastructure and other capital investment 52 6.3 Environmental management and sustainability 108 3.5 Development of Australia’s coal export markets 53 6.4 Old perception versus today´s reality 114 3.6 Energy security and independence 54 6.4.1 Case study: Brisbane Courier Mail 115 3.7 Growth of railways and ports 56 6.5 Indigenous Australians and mining 116 6.5.1 Case study: The Wilpinjong Coal Project 118 4. Employment and Socioeconomic Development 6.6 Community engagement 119 4.1 Introduction 58 6.7 References 121 4.2 Direct employment 59 4.3 Indirect employment 60 7. Carbon Capture and Storage 4.3.1 Multiplier estimates 60 7.1 Towards a cleaner coal 123 4.3.2 Macroeconomic model estimates 60 7.2 Coal power production in Australia 123 4.4 Other Economic Impacts 64 7.3 Carbon capture technologies 125 4.4.1 Real household disposable income 64 7.4 Carbon storage 127 4.4.2 Household and government consumption 7.5 Technology path towards meeting emissions goals 129 expenditure 65 7.5.1 Air blown coal combustion 129 4.4.3 Interstate trade 65 7.5.2 Oxyfuel coal combustion 130 4.4.4 Gross State Product and Gross Domestic 7.5.3 Coal gasification 131 Product 65 TABLE OF CONTENTS 7.6 Technological Options 131 CONTRIBUTORS 7.7 Australia at the forefront of CCS 133 Editor in Chief: Professor Peter Knights is BMA Chair of Mining 7.7.1 CCSD-CRC for Coal in Sustainable Development 133 Engineering and Head of the Division of Mining Engineering of the 7.7.2 CO2CRC – Greenhouse gas technologies CRC 134 7.7.3 cLET – Centre for Low Emission Technology 134 School of Mechanical and Mining Engineering belonging to the 7.7.4 Global Carbon Capture and Storage Institute 135 Faculty of Engineering, Architecture and Information Technology 7.7.5 Low Emission Technology Demonstration Fund of The University of Queensland. (LETDF) 135 Chapter 1: Professor Michael Hood is Chief Executive Officer 7.7.6 Coal21 136 of the Cooperative Research Centre for Mining (CRCMining), a 7.7.7 National Low Emission Coal Council (NLECC) 137 7.7.8 Research Providers 137 joint venture partially funded by the Commonwealth Government 7.7.9 Current demonstration 138 involving five Australian Universities (including The University of 7.8 CCS technology is key to emissions control in Queensland) and nine mining companies and mining equipment China and India 140 suppliers. 7.9 Projection of number of CCS jobs by 2020 141 Chapter 2: Dr Marion Diamond is Associate Professor with the 7.10 Conclusions 143 School of History, Philosophy, Religion and Classics belonging to 8. Coal’s New Frontiers the Faculty of Arts of The University of Queensland. 8.1 Introduction 144 8.2 Coal seam gas 144 Chapters 3 & 4: Dr John Asafu-Adjaye is an Associate Professor 8.2.1 Overview 144 with the School of Economics which reports to the Faculty of 8.2.2 Origins of coal seam gas 145 Business, Economics and Law at The University of Queensland. 8.2.3 CSG in Australia 147 John’s research interests include environmental economics, 8.2.4 History of CSG 148 economic modelling and policy analysis. 8.2.5 CSG environmental impacts and concerns 149 Chapter 5: Dr Shahriar Shafiee and Professor Peter Knights. 8.2.6. CO2 geosequestration in coal 150 Dr Shafiee holds a PhD in econometrics from the Universities of 8.2.7 CSG primer 151 8.3 Underground coal gasification 154 Tehran and Mazandaran in Iran. He is currently completing a PhD 8.3.1 Overview 154 in mineral economics with the School of Mechanical and Mining 8.3.2 History of UCG 156 Engineering at The University of Queensland. 8.3.3 Benefits and challenges with UCG 157 Chapter 6: Mr Bruce Ham is a mining engineer with over 30 8.3.4 CO geosequestration in UCG 159 2 years’ experience and is an independent health and safety 8.3.5 UCG primer 160 adviser to the mining industry. 8.4 Coal Conversion 162 8.5 Transport fuels 163 Chapter 7: Associate Professor Joe da Costa is a founding 8.5.1 Benefits and challenges with coal to liquids 166 member of the Centre for Coal Energy Technology belonging 8.5.2 Fischer-Tropsch primer 167 to the Faculty of Engineering, Architecture and Information 8.6 Chemicals and products 168 Technology of The University of Queensland. 8.6.1 Methanol 169 Chapter 8: Professor Victor Rudolph is a Professor within the 8.6.2 Synthetic Natural Gas 171 School of Chemical Engineering of the Faculty of Engineering, Appendix 1 Coal Classification 173 Architecture and Information Technology at The University of Appendix 2 Coal Production, Consumption, Reserves and Trade Statistics 174 Queensland. His research interests focus on energy and the environment, coalbed methane (CBM), CO2 sequestration and sustainable fuels. Note: all monetary units are expressed in Australian dollars. Executive Summary This study, by a multi-disciplinary panel of experts from The University of Queensland, adopts a plain language approach to present the findings on the past and future uses of coal and the role that this fuel has played and will continue to play, in Australia and globally.
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