Social Licence and
Sustainable Development:
    QER’s Perspective
                   28 June 2011
QER’s vision:
Help secure Australia’s energy future

Our mission is to build and operate a safe,
  economically viable and sustainable
      shale to liquid fuels industry
             in Queensland.
July 2009
Sustainable Development
•  Reduce                              •  Restore
  •    Remove processes                  •    Rehabilitation
  •    Reliable plant                    •    Plantations
  •    Renewables & energy reduction
•  Recycle
  •    Fuel gas
•  Reuse
  •    Cogeneration
  •    Waste streams
  •    Byproducts
Australia’s growing oil demand-supply gap


                                                       Business as Usual
                                                                 Assumed 23%
                                                                 Efficiency Gains




                                      Imports in 2030 = 335 MMbbls

                                                   Unconventional fuels
            Conventional oil supply
MMbbl




                                                                Source: EnergyQuest 2009
Australia’s fuel trade deficit
A$Bn

140                                                                $128b*
120                                                              High Price Scenario


100                                             $92b*
                                            Low Price Scenario
 80

 60

 40                    $30b*
 20    $12.6b*     Federal Government
                       Projection

  0
        2007             2015                    2030                  2030
                       * Excludes LNG exports                          Source: ACIL Tasman 2009
Sustainable Development

    Positioning STL
Economic benefits to QLD of a STL industry


4000 jobs regional Qld

2000 long term construction jobs

$800mpa taxes & royalties

$12.4B pa trade deficit reduction
Economic case for an Australian STL fuels industry


73 million barrels of oil annually

Australian refinery feedstock

$33bn to Australia’s GNP (2030)

Technology for 3T bbls of oil




     Source: ACIL Tasman 2009
Supporting the community
Social licence: engaging our communities
Social licence - understanding our community’s
            requirements and valuation
                                •  What is the maximum value we
                                   can add?
                                •  What opportunities and prospects
                                   are our communities looking for?
                                •  Are there basic requirements
                                   missing now?

•  What capability could the
   community fulfill in the future?
•  Where should the work be done?
•  What other linkages can we
   introduce?
Existing
                       Plantation –
                                                   Gibbs Property,
                       Future                      Calliope
                       Optimisation
NSF
Trial
             Trial          Future ERE
                                      Recreation
Area
ANorth
                                      Trial

                                       Future
                                       Strip
       NSF/GA
Trial
                   Grazing
       Area
ASouth                     Trial
Environment: Technology to reduce emissions
• Thermal oxidizers
• Lower temperatures
• Lump processing
• Lower gas and liquid volumes
• Sealed processes and tanks
• Iso-kinetic sampling
• Process and emissions measurement
QER’s planned project development stages



                                              ~ 2017 - 2019
                                              Commercial
                              2014-15         Stage II at
                              Commercial      20,000 bbls per
                                              day
                              Stage I plant
                 2011
                 Technology
                 demonstration
                 plant - QLD
       2007
       Colorado pilot plant
       trials
Demonstration plant objectives.....
•    Demonstrate safe and environmentally sound performance
     to community and government
                              $100m capital (70% regional
                               QLD)
                              150 construction/50 permanent



                      •    Develop product market acceptability

                      •    Maximize technical and process
                           development

                      •    Build operational expertise
The fuels QER will produce in Queensland

•  Synthetic crude oil for Australia’s
   refineries
    •  High cetane
    •  High energy density

                                         Wide Cut   QER
•  Ultra-low sulphur diesel              Naphtha    Low
                                                              USA

                                                    Sulphur   No. 2

                                                    Diesel    Diesel
•  High quality jet fuel
Shale to liquids can be part of a positive future

                                       “Australia could find itself with a clean
                                       shale-oil industry employing 6000
                                       people and adding $30 billion to the
                                       economy over the next 20 years.

                                       It has the potential to sit alongside
                                       clean coal, geothermal, coal seam gas,
Hon Peter Beattie
                                       biofuels, solar and wind in a realistic
Former Queensland Trade Commissioner
The Australian newspaper
                                       future global energy mix.”
14 August 2010
Questions and Points of
        View?
                Social Licence and
             Sustainable Development:
                 QER’s Perspective

Liam tobin sustainable development in resource intensive regions

  • 1.
    Social Licence and SustainableDevelopment: QER’s Perspective 28 June 2011
  • 2.
    QER’s vision: Help secureAustralia’s energy future Our mission is to build and operate a safe, economically viable and sustainable shale to liquid fuels industry in Queensland.
  • 3.
  • 4.
    Sustainable Development •  Reduce •  Restore •  Remove processes •  Rehabilitation •  Reliable plant •  Plantations •  Renewables & energy reduction •  Recycle •  Fuel gas •  Reuse •  Cogeneration •  Waste streams •  Byproducts
  • 5.
    Australia’s growing oildemand-supply gap Business as Usual Assumed 23% Efficiency Gains Imports in 2030 = 335 MMbbls Unconventional fuels Conventional oil supply MMbbl Source: EnergyQuest 2009
  • 6.
    Australia’s fuel tradedeficit A$Bn 140 $128b* 120 High Price Scenario 100 $92b* Low Price Scenario 80 60 40 $30b* 20 $12.6b* Federal Government Projection 0 2007 2015 2030 2030 * Excludes LNG exports Source: ACIL Tasman 2009
  • 7.
    Sustainable Development Positioning STL
  • 8.
    Economic benefits toQLD of a STL industry 4000 jobs regional Qld 2000 long term construction jobs $800mpa taxes & royalties $12.4B pa trade deficit reduction
  • 9.
    Economic case foran Australian STL fuels industry 73 million barrels of oil annually Australian refinery feedstock $33bn to Australia’s GNP (2030) Technology for 3T bbls of oil Source: ACIL Tasman 2009
  • 10.
  • 11.
    Social licence: engagingour communities
  • 14.
    Social licence -understanding our community’s requirements and valuation •  What is the maximum value we can add? •  What opportunities and prospects are our communities looking for? •  Are there basic requirements missing now? •  What capability could the community fulfill in the future? •  Where should the work be done? •  What other linkages can we introduce?
  • 15.
    Existing Plantation – Gibbs Property, Future Calliope Optimisation NSF
Trial
 Trial Future ERE Recreation Area
ANorth Trial Future Strip NSF/GA
Trial
 Grazing Area
ASouth Trial
  • 16.
    Environment: Technology toreduce emissions • Thermal oxidizers • Lower temperatures • Lump processing • Lower gas and liquid volumes • Sealed processes and tanks • Iso-kinetic sampling • Process and emissions measurement
  • 18.
    QER’s planned projectdevelopment stages ~ 2017 - 2019 Commercial 2014-15 Stage II at Commercial 20,000 bbls per day Stage I plant 2011 Technology demonstration plant - QLD 2007 Colorado pilot plant trials
  • 19.
    Demonstration plant objectives..... •  Demonstrate safe and environmentally sound performance to community and government   $100m capital (70% regional QLD)   150 construction/50 permanent •  Develop product market acceptability •  Maximize technical and process development •  Build operational expertise
  • 24.
    The fuels QERwill produce in Queensland •  Synthetic crude oil for Australia’s refineries •  High cetane •  High energy density Wide Cut QER •  Ultra-low sulphur diesel Naphtha Low USA Sulphur No. 2 Diesel Diesel •  High quality jet fuel
  • 25.
    Shale to liquidscan be part of a positive future “Australia could find itself with a clean shale-oil industry employing 6000 people and adding $30 billion to the economy over the next 20 years. It has the potential to sit alongside clean coal, geothermal, coal seam gas, Hon Peter Beattie biofuels, solar and wind in a realistic Former Queensland Trade Commissioner The Australian newspaper future global energy mix.” 14 August 2010
  • 26.
    Questions and Pointsof View? Social Licence and Sustainable Development: QER’s Perspective