BASE LOAD POWER PROBLEM BEGETS DEMAND FOR COAL SEAM GAS

The Coal Seam Gas (CSG) industry has found that new market emerging by removing coalpowered plants, by replacing them with gas-powered plants. See update further down, full document follows. . There is growing community concerns over the activities of the coal seam gas industry in the states of Queensland and New South Wales over their acquisition of land for exploitation of this resource despite the community concerns.

Coal Seam Gas extraction as reported by the documentary Gasland and others is racked with issues regarding the contamination of water and soil with cancer-causing hydrocarbons related to the BTEX group. Chemicals use in the water to push the gas to surface for extraction. BTEX is the fracking chemical.

[extract] ' BTEX is an acronym that stands for benzene, toluene, ethylbenzene, and xylenes.[1] These compounds are some of the volatile organic compounds (VOCs) found in petroleum derivatives such as petrol (gasoline). Toluene, ethylbenzene, and xylenes have harmful effects on the central nervous system. BTEX compounds are notorious due to the contamination of soil and groundwater with these compounds. This typically occurs near petroleum and natural gas production sites, and petrol stations and other areas with Underground Storage Tanks (USTs) or Above-ground Storage Tanks (ASTs) containing gasoline or other petroleum-related products.

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The amount of 'Total BTEX', the sum of the concentrations of each of the constituents of BTEX, is sometimes used to aid in assessing the relative risk or seriousness at contaminated locations and the need of remediation of such sites. Naphthalene may also be included in Total BTEX analysis yielding results referred to as BTEXN. In the same way, styrene is sometimes added, making it BTEXS.'

[...] [end of extract http://en.wikipedia.org/wiki/BTEX See below on elements of fracking fluid.

Technology to address the Base Load Power using Coal Seam Gas was announced by Alstom. The following press release and related documentation on CSG are shown below.

The CSG powered gas turbine Alstom boosts its gas turbine portfolio to address the growth in gas-fired power generation. WASHINGTON, D.C., September 13, 2011 /PRNewswire/ On 13 September, Alstom announced the launch of its upgraded GT24 gas turbine and the corresponding KA24 combined cycle power plant offering for North America, parts of Latin America, Asia and the Middle East (60Hz market). This important step closely follows the launch in June, of its upgraded GT26 gas turbine and the corresponding combined cycle power plant KA26 for the 50 Hz electricity markets. In upgrading its gas turbines for the 50 Hz and the 60 Hz electricity markets, Alstom intends to respond to the increasing demand for gas-fired power generation. Mark Coxon, Senior Vice President of Alstoms Gas Business said: These product upgrades are our response to the renewed growth we are witnessing in the natural gas fired power generation markets. We see the role of combined cycle power plants to be increasingly used as a back-up technology enabling more renewable power to be integrated into the energy mix. Accordingly these products have been optimised not only to offer very high output and efficiency, but also outstanding operational flexibility. The share of natural gas in the global energy mix is expected to rise sharply in the coming years. The increased demand for gas fired power generation primarily replaces in specific markets coal and oil, and also complements renewable energy sources. The GT24 and GT26 gas turbines are based on well-proven technology with more than 4 million operating hours. Alstom has dedicated important R&D efforts to developing the latest upgrades of the GT24 and GT26 turbines, including an investment of 100 million in a test power plant in Switzerland to validate the technology before bringing it to the market.
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More than 2,000 people worldwide are working in Alstom gas power plant related R&D and engineering. With 140 units already installed or ordered, over 48,000 MW of power generation capacity worldwide is based on Alstoms GT24/GT26 technology. The GT24 gas turbine for North America, parts of Latin America, Asia and the Middle East The upgraded GT24 gas turbine and other associated key power plant components will be manufactured in Alstoms factory in Chattanooga, Tennessee, in the USA, a state-of-the-art production facility that was inaugurated last year. It will employ up to 350 people, building and retrofitting major equipment for the fossil fuel and nuclear power generation market. The highly flexible KA24 combined cycle power plant based on the next generation GT24 (the sister machine of the next generation GT26) in a 2 on 1 (1) configuration, can start up in less than 30 minutes. A unique feature is the capability to provide more than 450 MW of power in 10 minutes to make up for the fluctuations in production inherent in some renewable energy sources (wind power, for example). This combined-cycle power plant is capable of delivering over 700 MW of electric power, enough electricity for approximately 500,000 Americans. A gross electrical efficiency of over 60% will be achievable. The higher efficiency results in fuel savings of approximately 250,000 tons annually(2), thus reducing over 650,000 tons of CO2 emissions. This is equivalent to eliminating the annual emissions of more than 100,000 US passenger cars. Natural gas will play an important role in the power generation mix in the USA both as a primary fuel and as back-up generation for renewables. States like Texas and California have very high renewable power capacity installed and this is projected to further increase substantially, necessitating flexible generation sources. The GT26 gas turbine for Europe, Asia, Middle East and other 50 Hz markets The upgraded GT26 gas turbine in a KA26 combined cycle features an efficiency of over 61%, avoiding more than 350,000 tonnes of CO2 annually(3) , and increased operational flexibility: more than 350 MW can be delivered to the grid in less than 15 minutes to enable integration of intermittent renewable sources of energy. The KA26, in a 1 on 1 configuration (4), is capable of producing more than 500 MW of power. With Europe predicted to generate 20% of its electricity from renewable sources by 2020, GT26 flexible gas turbines and power plants provide the perfect solution to meet the climate change challenge whilst also providing grid stability. 1. In this kind of combined-cycle power plant, 2 gas turbines and Heat Recovery Steam Generators supply steam to a single steam turbine. 2. Compared to the average efficiency of gas fired power generation in the United States. 3. Compared to the average efficiency of gas fired power generation in Europe. 4. In this kind of combined-cycle power plant, 1 gas turbine and Heat Recovery Steam Generator supply steam to a single steam turbine
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About Alstom Alstom is a global leader in the world of power generation, power transmission and rail infrastructure and sets the benchmark for innovative and environmentally friendly technologies. Alstom builds the fastest train and the highest capacity automated metro in the world, provides turnkey integrated power plant solutions and associated services for a wide variety of energy sources, including hydro, nuclear, gas, coal and wind, and it offers a wide range of solutions for power transmission, with a focus on smart grids. The Group employs 92,000 people in around 100 countries, and had sales of 20.9 billion in 2010/11.

http://www.multivu.com/mnr/52004-alstom-launches-upgraded-version-of-gt24-gas-turbinepower-plant-product/?TC=52004

ABOUT COAL SEAM GAS (CSG)

What is Coal Seam Gas?

Coal Seam Gas (CSG) is natural gas (methane) obtained from drilling and mining shale rock deposits by using a technique known as hydraulic fracturing. Hydraulic fracturing or fracking for short, uses water, additives and solids such as sand, ceramic and metals to force open and induce fractures into shale rock formations where natural gas is trapped, above grounds pumps force the fluid mix at high pressures inducing cracks and fractures in the underground rock formations, allowing the gas to flow through with ease upwards to the surface. This is known as hydraulic fracturing. This technology originally developed by Halliburton to extract water, oil and gas which otherwise would be uneconomical extract when compared from ordinary wells (Hydraulic Fracturing, JPT Nov 2010).

Drivers behind Coal Seam Gas Demand

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As cited by the by Coal Seam Industry suppliers; CSG is a clean burning fuel by virtue of being emitter of C02 as it burns, (page 12, article 2.3, Macquarie Energy, PEL 463 Review of Environmental Factors Drilling Operations 2010 February 2010) which make it a suitable

fuel for governments and industries to use so they can comply with their low emission targets set as per Kyoto Protocols (Belinda 21/02/11 4 Corners). At the Federal level in 2008 by then Rudd Govt (insert signage of treaty by Rudd report, nutshell ref).This includes the commitment by a number of State governments and Local Councils. ) As a consequence of this international commitment; a new market has appeared for natural gas companies and utilities. This has led to a boom in prospecting, extraction, use and conversion of coal-fuelled power plants to use natural gas in the generation of electricity, cooling and heating for air conditioning. The use of natural gas and the commitment of the City of Sydneys Lord Major Clover Moore to meet its commitment to a low carbon emission target have led to a new project for natural gass electricity generation. Lord Major Clover Moore made her commitment to a low a low emissions footprint in her speech to the NSW Parliament in September 2008. (Lord Mayor of Sydney addresses the NSW Parliament about peak oil), where she cited the concerns about CO2 emissions being instrumental in causing Global Warming (Anthropogenic Global Warming, Climate Change) and Peak-Oil Theory (Huberts Peak Oil Theory) behind the push to reduce and eliminate demand consumption of fossil fuels by the City of Sydney Council, which currently power a number of sites controlled by the City of Sydneys council (reference Post Carbon Cities Lord Mayor of Sydney addresses the NSW Parliament about peak oil).

As a result of the City of Sydney Council has hired Allan Jones, engineer, with a background in trigeneration projects in the UKs major city council conversion to trigeneration power plants to meet to a low emissions target. (cite background) to implement the Trigeneration project (uses natural gas to generate electricity, provides heating, cooling for air condition) to effect the implementation. City of Sydney Council has put a tender for Trigeneration 1045 for (cite reference Tender number 1045 For Trigeneration Systems Design, Installation, Operation, and Maintenance with Finance and City-Wide ESCO Options). (2.3.1 TriGeneration Concept PEL 463, Review of Environmental Factors, Drilling Operations 2010, February 2010) A number of companies have come forward with the tenders and the City of Sydney has awarded the tender Macquarie Energy, owned by Apollo Gas, is to commence test drilling for methane gas with a view to extraction from the inner city suburb of St Peters, the site is owned by Dial-A-Dump. (Sun Herald 14/11/ 2010). Apollo Gas managing director Andrew Mayo said that there is no intention of using fracking technique in the St Peters site as of 14/11/2010. However this policy may be have been reversed since the acquisition of its parent company last February 8 this year, Dart Energy Ltd, acquired Apollo Gas (Reportage Online, 7/03/11). Macquarie Energys Andrew Mayo indicated that the company has been granted several other sites for CSG exploration and believes that there are several large coal seam gas deposits stretching from the City of Sydney to the Hunter Valley 16/11/ 2010, Ben Cubby, SMH.).

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St Peters Site

The St Peters: fracking test site, operation by Macquarie Energy. This intended to supply the gas to the trigeneration project by the Sydney City Council.

Risks Leakage of waste water into underground aquifers, gas leakage, leakage of chemicals into aquifers and rise to the ground water supplies in populated areas water supply, soil contamination. These chemicals can bio-accumulate in human organs. ( 4 Corners, 21/02/11). Dr Mariann Lloyd-Smith (4 Corners 21/02/11), specialist in chemical management said that fracking chemicals are regulated, reported and disclosed by the Coal Seam Gas industry. She elaborates that the chemicals used not listed in material safety data sheets for handling and disposal and continue unregulated by the national regulator NICNAS. In total there are 23 generally used chemicals in fracking, however just two have been assessed (Four Corners 21/02/2011), Dr Lloyd-Smith the rest remain unaccounted for. There are reports on contamination by BTEX chemicals in QLD boreholes as 18 Nov 2010 (Business Expectator 18/11/10).

Elements of fracking fluid:

The main component is water, with proppants such as ceramics, sand, metal particles and a closely held industry compounds, among them BTEX chemicals. BTEX: Benzene, Toluene, Exylbenzine, Xylene, are gasolines compounds, such as Xylene, Toluene and Benzene; these are known cancer inducing chemicals and endocrine disruptors The full list of chemicals used in the industry is available from the New York State Dept of Conservation.

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At the time of writing, the status of the St Peters site prospective future for the production of CSG is not certain pending both the resolution of planning laws devolution to the local council, a change of policy of by the City of City and NSW Govts continuation of low carbon emission policies embodied in the Trigeneration Scheme and the actual passing of the Carbon Price to make CSG a viable and profitable endeavour for the Gas Industry.

REFERENCES

Macquarie Energy, PEL 463 Review of Environmental Factors, Drilling Operations 2010, February 2010 http://www.dpi.nsw.gov.au/__data/assets/pdf_file/0009/328338/20100331REF-PEL-463-Macquarie-Energy-Drilling-Operations-Appen.PDF

Australia ratifies Kyoto Protocol December 3, 2007 http://www.smh.com.au/news/environment/rudd-signs-kyotodeal/2007/12/03/1196530553203.html

Four Corners, Gas Rush, 21.02.11 industry spokesperson, Belinda Robinson, Australian Production and Exploration Association (video clip). http://www.abc.net.au/4corners/special_eds/20110221/gas/ Four Corners, Gas Rush, 21.02.11 ,Mariann Lloyd-Smith, specialist International Chemical Management. (video clip). Sun-Herald, Sun Sydneys secret power grab coal seam gas drilling planned for inner-city Sydney suburb of St Peters http://www.smh.com.au/environment/conservation/sydneys-secret-power-grab-2010111317ru0.html 4 Corners 21/02/0=11 Mariann Lloyd-Smith http://www.abc.net.au/4corners/special_eds/20110221/gas/default.htm)

Gloucester Project Overview. Gloucester Coal Seam Gas Project factsheet

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http://www.agl.com.au/Downloads/Gloucester_Project_overview.pdf

Hydraulic Fracturing A history of an enduring technology, Carl T. Montgomery and Michael B. Smith, NSI Technologies, JPT DECEMBER 2010 http://www.spe.org/jpt/print/archives/2010/12/10Hydraulic.pdf Hydraulic Fracturing, The Fuss, The Facts, The Future. Robin Beckwith, JPT/JPT Online Staff Writer, JPT DECEMBER 2010

Reportage Online, Sydney test site attracts global miners, 27 March 2011 http://www.reportageonline.com/2011/03/sydney-test-site-attracts-global-miners/

Gas drilling licence nabs most of city, Date: November 16 2010, Ben Cubby, Environment Editor, and Sydney Morning Herald. http://www.smh.com.au/environment/gas-drilling-licence-nabs-most-of-city-2010111517uf5.htmls

Allan Jones Flicking the switch from hot air to usable heat, Allan Jones, July 22, 2008 http://www.smh.com.au/articles/2008/07/21/1216492347746.html?page=fullpage#contentSw ap1

Arrow tests confirm BTEX chemicals in water, 18 Nov 2010 http://www.businessspectator.com.au/bs.nsf/Article/Arrow-tests-confirm-BTEX-chemicalsin-water-BB38X?OpenDocument

Queensland government to ban BTEX chemicals, AAP, 04/08, 2010, http://www.news.com.au/breaking-news/national/queensland-government-to-ban-btexchemicals/story-e6frfku9-1225901037336#ixzz1Id9YByvv List of chemical used in fracking. New York State Dept of Conservation. http://www.dec.ny.gov/docs/materials_minerals_pdf/ogdsgeischap5.pdf http://en.wikipedia.org/wiki/BTEX

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