Application of Oil Industry Technology for Immediate GHG Mitigation In the Australian Coal Industry

This study was commissioned to identify oil industry technologies which are able to contribute to greenhouse gas (GHG) mitigation in the Australian coal industry.  Concept studies have been performed for selected technologies. These studies show that:

• The most cost effective technology for lowering emissions for drained gas is a simple flare. Failing other actions, it is recommended that all drained gas facilities utilise flaring to reduce their emissions.
• The most cost effective method of mitigating GHG emissions when both drained gas and ventilation air is available is a flare designed to operate with ventilation air (Thermal Oxidiser).
• Catalytic Oxidation is able to substantially reduce GHG emissions to very nearly an ideal limit. Regenerative or Recuperative Oxidation Technologies are slightly inferior but more cost effective. These technologies produce less nitrogen oxides than flare systems.
• For power generation schemes, gas turbines produce a better greenhouse result than reciprocating piston engines, however, reciprocating piston engines (as used in the Appin-Tower scheme) have higher efficiency ie, produce more electricity than do gas turbines.
• Pressure Swing Absorption (PSA) offers a business opportunity to produce pipeline gas and liquid carbon dioxide. By this concept study, this appears a better option than power generation, however …
• PSA should be subject to further site specific analysis to confirm the value of sales gas and carbon dioxide and to critically compare the technology to other available methods for producing pipeline specification gas.
• Biofilters may be able to provide a role in greenhouse mitigation, but the cost of gas reticulation (in both financial and greenhouse senses) needs to be minimised.

• To give a guide to cost efficiency, the technologies have been ranked according to the capital cost of removing an annual tonne of carbon dioxide ($/t CO2 /a) Also included is an estimate of the annual cost or income of operation (Net Cash Flow) .