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Introduction to Victoria’s Brown Coal Resources

JOGMEC seminar 2022
Jane Burton
Acting Head, Resources
Department of Jobs, Precincts & Regions

Victoria, Australia

7 September 2022

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Victoria – An Outstanding Place to Invest
Competitive business costs
World-leading research capabilities andincentives for research and development

Gateway to Asia-PacificSupportive Business
Environment

Home to industry leading companies

First-class liveability

Vibrant startup ecosystem

A highly skilled workforce

Competitive State

Australia’s tech city

Australia’s fastest growing city

A strong economy

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Sourced :Invest Victoria 2022

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Victoria’s brown coal resource• 430 billion tonnes in situ brown coal
• 65 billion tonnes of measured coal
• 33 billion tonnes of potentially economic
brown coal

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Victorian brown coal characteristics
Energy Value (net wet)

5.8 – 11.5 MJ/kg ☒Energy Value (gross dry)

25 – 29 MJ/kg ☒Overburden thickness

10 – 20 metres ✅

Strip ratio (coal:overburden)

0.5 / 5:1 ✅

Water (ar%)

48 – 70 ☒Carbon (db%)

65 – 70

Oxygen (db%)

23 – 30

Hydrogen (db%)

4 – 5.5

Ash (db%)<4 ✅

Nitrogen (db%)<1 ✅

Sulfur (db%)<1 ✅
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Coal model
The model••••••

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Supports management ofresource
Matching coal todevelopment
opportunities
Informing land use
planning
Informing government,industry and communities
17 properties
16 seams

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Coal model – seam, sodium and moisture values

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Coal model
Bores - pink

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2003: 8000 bores
covering 1100 km2•

2007: additional 445
bores covering anadditional 2030 km2•

2011: additional 641
bores covering 4912 km2•

2011: 16 petroleum wells
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Victorian Climate Change Strategy

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https://www.climatechange.vic.gov.au/__data/assets/pdf_file/0025/522169/Victorian-Climate-ChangeStrategy-Accessible.pdf

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Coal Statement• Released in July 2017
• The Statement outlines the Victorian
Government’s position on new brown coalprojects• Decision making guidelines for new coalprojects

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Victoria’s Coal Policy – Key elements‘OPEN FOR BUSINESS’ APPROACH

INDEPENDENT EXPERT PANELThe State will adopt an 'open forbusiness' approach

Independent Expert Panel to support decision
makingACCESS TO COAL

EMISSIONS STANDARD

Preference given to sourcing coal fromexisting mines

0.45 t CO2-e/MWh or 0.3 t CO2-e/ tonne of coal

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High-value brown coal derived products

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Brown coal product pathways
Raw Brown
CoalDirect
Liquefaction

VictorianBrown CoalGasifier(CO – H2)
CoalDryingBriquette~13%
MCAmmonia

UreaMethanol

DMEHydrogen

ChemicalFuel CellMethane

SNG

Tar - Oil - GasPyrolysis
12Char – AC
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Hydrogen enabled by CCS – an example
Hydrogen Energy Supply Chain Project•

enables clean hydrogen from brown coal and biomass- with CCUS to enable zero emissions•has received investment and strong interest from Japanese and Australian Governments•Consortium members include: Kawasaki Heavy Industries, JPower,Marubeni, Iwantani, Sumitomo, AGL• HESC' Suiso Frontier hydrogen carrier arrived in Kobe, February 2022 carrying Latrobe Valley hydrogen.
• Project Partners are preparing to advance to the next phase with the support of Australian and Victorian Governments.

“This project (HESC) has the potential to fulfill the dream, the dream to produce clean hydrogenfor export to Japan and other countries to help them deliver the most fundamental
revolution of modern civilization – the transition to net zero emissions.”

Dr Alan Finkel – Special Advisor to Commonwealth on Low Emission Technologies

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Elements of the HESC Project•

Each element includes technologies that are largely
proven•The Pilot Project was a critical first step in realising acommercialised hydrogen production andexport industry
Source: hydrogenenergysupplychain.com

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HESC Project – Key statistics
LOCATION

AGL’s Loy Yang site in the Latrobe
ValleySTATE FUNDING$50 Million

COMMONWEALTHFUNDING$50 Million

CONSTRUCTION OFPILOT PLANT

2019-2020

OPERATION OF PILOT
PLANT

For one year between 2020 and 2021

TOTAL PILOT PROJECT
VALUE~$500 Million

COMMERCIALISATIONDECISON

Mid to Late 2020s✅

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Questionsjane.burton@ecodev.vic.gov.au

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