Admittedly, the re-election of the Howard Government is far from a done deal. But Cool Energy managing director Jessie Inman said the plant would facilitate CO2 geosequestration, and support for such a facility was a critical step forward for any government that was serious about CO2 emissions reductions.

“Geosequestration is recognised as the key to storing greenhouse gases and reducing adverse impact on the environment,” she said.

“This project could be one of the first in the world to achieve accredited commercial-scale geosequestration.”

The plant, which would use Cool Energy’s CryoCell technology, is to be sited in Beach and Great Artesian’s PEL 106 permit in the Cooper Basin, South Australia.

The facility would consist of a gathering system to feed gas and condensate into a central facility that would process the gas by dehydration, capture and permit sequestering of CO2, together with separation and pipeline transport of condensate and liquefied petroleum gas to Adelaide and Sydney.

Cool Energy, Great Artesian and Beach recently completed a feasibility study that confirmed the commercial viability of a 20 million cubic feet of gas per day gas plant producing sales gas, LPG and condensate.

The next step is to begin front-end engineering and design. The construction of the plant will be subject to the usual financial and regulatory approvals. The overall development program also includes a drilling program to substantiate an adequate reserves base.

Inman said the joint venture marked Cool Energy’s first commercial project, but other gas producers were showing keen interest in the CryoCell technology.

“Our technology provides gas producers with significantly lower capital and operating costs to remove CO2, but the technology will also help to give natural gas production the valuable ‘green’ credentials it needs in a carbon aware world,” she said.

“One of the major benefits of this technology, beyond providing capital and operating cost savings, is its ability to capture carbon dioxide in a form that can be immediately geosequestered. It is a technology that could significantly contribute to Australia’s strategic interests to lead the way in developing new technologies that reduce CO2 emissions.”

Beach managing director Reg Nelson said a CryoCell gas plant could reduce gas producers’ capital costs and carbon footprints. It could also cut chemical use and maintenance because removing water early in the gas process greatly reduced corrosion.

“The CryoCell operating process is far less complex than current conventional plants, with the key benefit being that the CO2 component during gas processing is delivered in liquid form ready for immediate underground storage,” Nelson said.

“Beach is already involved through its interests in the Cooper Basin Joint Venture with a proposal to sequester CO2 in depleted gas reservoirs in the Cooper Basin, so this complements that work.”