2 nd NSW Coal and Energy Conference 16 th September 2010 Energy Brad Mullard Executive Director Mineral Resources

1.ENERGY 2.WATER 3.FOOD 4.ENVIRONMENT 5.POVERTY 6.TERRORISM AND WAR 7.DISEASE 8.EDUCATION 9.DEMOCRACY 10.POPULATION

GLOBAL PRIMARY ENERGY CONSUMPTION (Million Tonnes Oil Equivalent)

Australian Energy Production (PJ)

AUSTRALIAN ENERGY EXPORTS ( $ Billions)

Freeman Dyson

Global Carbon Dioxide Emissions Source: BP Statistical Review of World Energy June 2009

Per Capita CO2 Emissions Source: IEA

Paleocene-Eocene Thermal Maximum

Australia’s primary energy consumption, 2007–08 and 2029–30 Source: ABARE

COAL

COAL  Coal is the world's most abundant and widely distributed fossil fuel.  85% of coal Reserves are concentrated in six countries  23% of primary global energy needs are met by coal  Around 138 million tonnes of saleable coal was produced in NSW during  NSW Coal Production was valued at over 19 billion dollars in  NSW depends on coal for 90% of it’s electricity

GLOBAL COAL PRODUCTION Source: BP Statistical Review of World Energy June 2009

NSW Power Stations emit almost 60 million Tonnes of CO2 per Year

GAS

Eastern Australian gas markets (PJ) Source: ABARE 2010

Coal Seam Gas Reserves (2P) Source: Coal Seam Gas Reserves (2P) Source: Queensland Department of Mines and Energy 2009

Coal Seam Methane 2P Reserves

Methane CO 2 Methane and Carbon Dioxide absorbed onto coal seam

Geothermal Gradient

Geothermal Energy

The use of geothermal energy for electricity generation and direct use applications is new technology to Australia Requires successful technical and commercial demonstration However in the nine years since the first Geothermal Exploration Licence (GEL) was granted in Australia, interest and activity in the geothermal sector has increased dramatically

Geothermal Electricity Generation

Geothermal Anomalies

4,000-6,000 m ( o C) 2,000-4,000 m ( o C) m ( o C)

Coal Seams as Geothermal Blankets

GEOTHERMAL ENERGY

Direct Use Geothermal  Lower heating costs by reducing electricity, oil or gas consumption;  Reduced emissions of CO2 and oxides of nitrogen and sulphur  Minimal ongoing costs after installation.  Heat pumps can be used almost anywhere in the world to provide heating and cooling for buildings

Geothermal Heat Pumps globally are the fastest-growing means of exploiting geothermal energy

CLEAN COAL FUND  Fugitive Emissions (Open Cuts, VAM-RAB)  Direct Carbon Fuel Cell  Combined Brayton Rankin Cycle Engine  Chemical Looping Air Separation  Aqueous Ammonia PCC  Mineral Carbonation  Novel Capture material (Carbon fibre)  Ultra Clean Coal feed for Diesel Engine  Public Acceptance of CCS

Mineral Carbonation  More than enough minerals  High cost could be offset by sale of mineral products  Could use waste materials high in Mg, Fe and Ca - eg bottom ash and fly ash, Asbestos, etc)

CCS delivers one-fifth of the lowest-cost GHG reduction solution in 2050

THANK YOU