Environmental Clean Technologies Limited · ASX:ECT
Environmental Clean Technologies — All-Energy Conference 2011
20 slides from Environmental Clean Technologies's conference presentation, Oct 12, 2011
Slide 1: All Energy Conference 2011: Delivering least cost CO2 abatement for Victoria
ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED All Energy Conference 2011 Delivering least cost CO2 abatement for Victoria Adam Giles] Wednesday 12* October 2011 | All-Energy Conference
Slide 2: Disclaimer
IRONMENTAL TECHNOLOGIES LI Disclaimer Environmental Clean Technologies Limited has taken all reasonable care in compiling and producing the information contained in this presentation. The Company will not be responsible for any loss or damage arising from the use of the information contained in this
Slide 3: Embracing clean energy in government
I’m presen,ng under the conference headline of ‘embracing clean energy in government’. But I have to say I think government has done a pre?y good job of iden,fying the challenges in this space. There’s been a lot of investment. A lot of ac,vity. And in the context of years of uncertainty around a ca
Slide 4: ECT is a technology commercialisation company
• ECT is a technology commercialisa,on company. We, along with many other companies, seek to develop solu,ons that contribute to a fuller emissions reduc,on strategy. • Our focus is on the coal drying piece of the puzzle, but our technology also enables advanced combus,on solu,ons and provides a com
Slide 5: Benefits of Victorian brown coal
These have been done to death so I’ll be quick: • Low win cost -‐ Cheap due to open cut mining and abundance • Lower electricity cost -‐ Historically cheaper electricity prices than other states • Compe,,ve advantage -‐ Cheaper electricity a?racts energy intensive industries and creates jobs • Co
Slide 6: Water content as the biggest challenge for brown coal
• However the single biggest challenge facing brown coal use, in a carbon constrained world, is its water content. • I think it’s important to understand why this is the single largest issue: • Brown coal is 60% water. This water draws energy away from the coal as it combusts, causing it to evaporat
Slide 7: Emissions targets, carbon pricing and forced closures
• Emissions reduc,ons targets, including the 5% Federal target and 20% State target, draw the line in the sand. • Carbon pricing, at $23 a tonne, sends a price signal, but apparently not a strong enough signal to make generators switch, so there’s also a tender based process as part of the Federal G
Slide 8: Generation mix today and in 2020
• The genera,on mix in the first column is todays profile • If we close 1800MW of brown coal and meet RET of 20% by 2020, then the genera,on mix will look something like the right column • In the right column we’ve kept gas the same to highlight the gap in genera,on capacity that needs to be filled (pu
Slide 9: Emissions profile and targets
• The emissions total in the first column is todays profile, around 70 million tonnes a year • If we close 1800MW of brown coal and meet the renewable energy target (RET) of 20% by 2020, then the emissions will drop to around 42Mtpa. However we need to fill the electricity genera,on gap iden,fied on the
Slide 10: Gas as the option to fill the generation gap
• Gas is generally seen as the only viable op,on to fill the gap between the 20% RET and the void leh by shujng down enough brown coal to meet targets? • The implica,on is that this results in a significant increase in demand, with resul,ng flow on to available supply, infrastructure and cost for compe
Slide 11: Achieving least cost abatement
• How do we begin to achieve least cost abatement given the policy environment? • Simply, we start with the target -‐ the desired end result -‐ and work back from there • Firstly, we carve out 20% for the RET quota – set that chunk of emissions aside, because it’s taken care of… locked in regardle
Slide 12: Marginal abatement cost curve
• This sample chart illustrates what a marginal abatement cost curve could look like. • By calibra,ng the marginal cost against BAU -‐ in this case brown coal power genera,on with a carbon price -‐ we iden,fy least cost op,ons • Which brings me to a look at how our own Coldry+USC (ultra supercri,c
Slide 13: ECT's coal drying approach
• We at ECT have developed a simple approach that targets the very heart of the issue iden,fied at the beginning of this presenta,on – wet brown coal is inefficient, leading to high CO2 intensity • We’ve developed a cost effec,ve drying solu,on that is currently approaching commercial demonstra,on and l
Slide 14: How lower emissions are achieved
• How is this achieved? • By drying the coal we solve the single biggest factor in our emissions intensity -‐ water content. And we enable the solu,on to the second leading cause of emissions intensity – combus,on efficiency -‐ by opening the door to the deployment of advanced combus,on genera,on (U
Slide 15: Coldry+USC versus business as usual
• If we compare the difference between the Coldry+USC solu,on and business-‐as-‐ usual, its clear how dry coal and high efficiency combus,on drags down the CO2 intensity • To produce 1MW of electricity BAU requires 1.4tonnes of coal and emits around 1.35 tonnes of CO2 • The Coldry-‐USC solu,on requi
Slide 16: Why Coldry+USC is lower emission
• Why is it lower emission? • Because tradi,onal brown coal power sta,ons are around 30% efficient. USC is upwards of 45%. • This translates to a significant emission reduc,on compared to BAU. • But how does it fare in cost terms against gas? Lets take a look… 16
Slide 17: Cost of generation scenarios to 2025
• Aher mapping out the three scenarios; business-‐as-‐usual, the Coldry+USC led scenario and the gas-‐led scenario, between now and 2025, we came up with a very interes,ng snapshot. • This chart shows what could happen to the cost of genera,on if we do nothing, versus deploying gas or a dry coal
Slide 18: Abatement cost and gas price sensitivity
• In the last slide I highlighted that gas was pegged at $6. We think this is very conserva,ve as commentators are saying that deploying only gas to meet our targets exposes the state to parity pricing. • This chart shows the abatement cost per tonne of CO2 for a Coldry+USC solu,on (red line) compar
Slide 19: Summary
• So, to summarise, the policy framework is in place both at State and Federal level. • The challenges around Victorian lignite are well understood. • There are a bunch of stakeholders surrounding the problem with innova,ve solu,ons • While gas is part of the mix, it’s by no means the only op,on • D
Slide 20: Thank you
Thank you Adam Giles Operations Manager [email protected] +61396840888 20
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