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1.8 Timeframe
The estimated start date for construction is mid 2010.
1.9 Alternatives x No
Does the proposed action
include alternative timeframes, Yes, you must also complete section 2.2
locations or activities?
1.10 State assessment No
Is the action subject to a state
or territory environmental x Yes, you must also complete Section 2.4
impact assessment?
Demonstration Stage
The demonstration stage (2011) of the Project will involve the construction of a coal gasification, DME production and
power generation plant to demonstrate –
• the cleaner use of coal through gasification of about 2000 tonnes per day (tpd) (up to 800,000 tonnes/year) of high
ash coal to produce 1,980 tpd of synthesis gas (syngas);
• the use of the syngas to produce 447 tpd (150,000 tonnes/year or 227 million litres/year) of DME for compression
ignition engines, fuel cells and numerous other applications, using a novel, low-cost production technology;
• the potential use of syngas and by-products such as nitrogen for the production of other useful chemicals and
fertilisers;
• the use of a hydrogen-rich (60% H2 by volume) tail gas for the production of 51 MW of cleaner power; and
• the pre-combustion capture of CO2 for potential enhanced oil recovery from depleted oil fields and
geosequestration.
Steam for Process Use
Coal Feed
HRSG
H2 S removal
CO2
Shift
Oxygen Reactor
Tail Gas to Power
Generation
Steam
Fluidised Bed
Gasifier
CO2
DME removal
Reactor
Product Separation
DME Product
Figure 1, Demonstration Plant Flow Diagram
Figure 2, Demonstration Stage Open Cut Mine and Infrastructure layout plan
Following the successful commissioning of the demonstration stage of the Project, a Stage 2 expansion (2013) will involve:
• the expansion of the coal mine to produce an additional 3 million tonnes per year (Mtpy) of coal, thereby
increasing mine capacity to 3.8 Mtpy.
If Stage 1 and 2 are successful Ambre Energy will consider a Stage 3 expansion; the timeframe for this is 15 years away
and an additional application will be made at this time.
Figure 3, Stage 2 mine expansion layout Plan
2.2 Alternative locations, time frames or activities that form part of the referred action
If you have identified that the proposed action includes alternative timeframes, locations or activities (in section 1.9) you
must complete this section. Describe any alternatives related to the physical location of the action, time-frames within
which the action is to be taken and alternative methods or activities for undertaking the action.
There were a number of alternate locations investigated for the project. These included locations in the immediate area,
locations within the region and also alternate locations within Queensland. Most of these locations were unsuitable due to
the lack of coal supply. The current site was chosen due to a number of reasons including:
- the suitability of coal to produce DME found in the area;
- the ability to develop high ash coal deposits;
- the suitability of the unique high volatile coal to produce DME found in the area;
- access to a large body of local skilled workers;
- access to a large body of local contractors; and
- close proximity to important infrastructure.
There were a number of alternate timings for the project considered. It has been decided that the demonstration project will
be built first with the intention of Stage 2 occurring within 3 years. There is also the possibility of an additional stage to be
added on in the future should the demonstration project and Stage one be determine feasible.
The project will also require a number of approvals including a mining lease, Environmental Authority for ERAs, approval
under the Vegetation Management Act 1999, Water Act 2000 and potentially under the Nature Conservation Act 1992,
Fisheries Act 1994 and other local and state legislation once details of the project have been finalised.
Consultation with the local community has already been undertaken and will continue to be undertaken during the EIS
stage of the project. A detailed consultation management plan is currently being prepared by the proponent which will
outline the different types of consultation that has been undertaken and that will be undertaken for the project. This may
include public meetings, open days, information newsletters etc.
Margaret McLeod, Sandra Bauwens and Adrian Beattie are the endorsed Aboriginal Parties in respect of the Plan Area
pursuant to section 34(1)(b)(i) of the Cultural Heritage Act. Project Activities may impact Cultural Heritage in the Plan Area.
The parties have consulted about the Project and the management of its possible impact on Cultural Heritage pursuant to
sections 104 and 105 of the Cultural Heritage Act.
The parties have agreed to enter into this Agreement for the purposes of identifying, assessing, protecting, managing and
minimizing the impact on Cultural Heritage in the Plan Area and to this end they are committed to work together in close
cooperation in a relationship of respect through open and constructive consultation. It is the intention of the parties that this
Agreement will be an Approved CHMP under the Cultural Heritage Act
The Felton Clean Coal Demonstration project is a commercially viable, stand alone entity capable of supplying significant
volume of DME to local and national markets for more than 30 years. Ambre Energy (Felton) Pty Ltd has identified the
potential for future possible expansion of the project to keep up with the anticipated growth of DME as an alternative
transport fuel within Australia. These expansions as outlined below are not vital to the profitability or success of the
operation.
Following the successful commissioning of the demonstration stage and stage 2 (mine expansion) of the Project, a Stage 2
expansion of the processing facility will involve:
¾ the expansion of the processing plant to 2,500 tonnes per day (800,000 tonnes per year) of DME and 200 MW of
power.
Stage 3
¾ a further expansion of the coal mine to produce an additional 3 Mtpy of coal, thereby increasing mine capacity to
6.8 Mtpy; and
¾ a further expansion of the processing plant to 4,500 tonnes per day (1.5 Mtpy) of DME and 350 MW of power.
Stage 4
¾ a further expansion of the coal mine to produce an additional 6 Mtpy of coal, thereby increasing mine capacity to a
total of 12.8 Mtpy; and
¾ a further expansion of the processing plant to 6,500 tonnes per day (2.8 Mtpy) of DME and 650 MW of power.
The proposed development is located within the same catchment as the Narran Lake Nature Reserve. Narran Lake is located
over 400km south west from the proposed development site. The Development site has the potential to impact Hodgson
Creek which flows into the Condamine River, which forms part of the Condamine-Balonne Basin. Narran River is part of the
Condamine-Balonne Basin and it terminates in the Narran Lake Nature Reserve located in NSW. The potential to impact this
wetland during construction is minimal, especially with adequate erosion and sediment control devices in place.
During operation the potential contaminants are all bunded according to Australian Standards. Fuels and chemicals will all be
bunded and will be located away from Hodgson Creek to ensure that the creek will not be contaminated during the operational
phase of the project.
Figure 4, Location of Narran Lake to the Felton Clean Coal Demonstration Project
Description
• Bluegrass (Dichanthium spp) dominant grasslands of the Brigalow Belt Bioregions (north and south)
• White Box-Yellow Box-Blakely’s Red Gum grassy Woodland and Derived Native Grassland
Figure 5, Location of threatened Blue Grass community (community is shaded pink)
Threatened Species
Species EPBC Status Response
Birds
Red Goshawk (Erythrotriorchis V Tropical open woodland, edges of rainforest and dense riverine
radiatus) vegetation. Nests in trees taller than 20 m within 1 km of a
permanent watercourse or wetland. Forages in open forests and
gallery forests.
Squatter Pidgeon (Geophaps scripta V Open grasslands often in eucalypt woodland. Preference for
scripta areas on sandy soil with low gravel ridges and nearby water.
Swift Parrot (Lathamus discolour) E Breeds in Tasmania and over-winters in forests and woodlands
on the Australian mainland, congregating where eucalypts are
flowering profusely. In coastal SEQ, red ironbark/ forest red gum
forests and yellow box forest.
Australia Painted Snipe (Rostratula V Shallow muddy freshwater swamps and marshes.
australis)
Regent Honeyeater (Xanthomyza E Eucalypt woodland and open forest on the slopes of the Great
phrygia) Dividing Range.
Mammals
Large-eared Pied Bat, large Pied bat V Dry forests and woodlands, moist eucalypt forests, caves and
(Chalinolobus dwyeri) mines.
Spotted-tail Quoll (Dasyurus maculatus E Rainforests and dense woodlands, dens in hollow logs, trees,
maculatus) caves and rock crevices. Uncommon over most of its range,
restricted to large forested areas.
Eastern Long-eared Bat (Nyctophilus V River Red Gum forest, semi-arid woodlands and savannas.
Murray Cod (Maccullochella peelii V Freshwaters of the Murray-Darling River drainage in Qld, NSW,
peelii) Vic and SA, from smaller upland streams to large slow-flowing
rivers. Prefers deep holes with cover such as large rocks, fallen
trees, stumps and overhanging vegetation.
Reptiles
Five-clawed worm-skink (Anomalopus V Open grasslands on heavy cracking clay in the Darling Downs.
mackayi) Usually in soil under dead grass. Often on relict roadside verges.
Grassland earless dragon E Remnant roadside grassland and adjacent croplands. Occupies
(Tympanocryptis pinguicolla) intensively farmed, mixed croplands of cotton and sorghum.
Plants
Finger Panic Grass (Digitaria porrecta) E Native grassland, woodlands or open forest with a grassy
understorey, on richer soils.
Tricolour Diuris (Diuris sheaffiana) V
Homopholis belsonii V Found in brigalow forest and temperate semi-humid woodlands
on poor soils.
Hawkweed (Picris evae) V All recent collections appear to come from modified habitats such
as weedy roadside vegetation. Its main habitat is open
Eucalyptus forest and Dichanthium grassland, roadsides and
cultivated areas (paddocks).
Queensland EPA Database searches also identified some EPBC Act listed species that were not present on the EPBC Act
protected matters report. They are listed in the table below.
There is currently a flora and fauna investigation being undertaken to determine the extent / existence of the ecological
communities and the presence of the protected species. From mapping it has been determined that a small area of the
Bluegrass Community is located on the southern portion of the site and may be impacted by the proposal. It is unclear at this
stage if the White Box-Yellow Box-Blakely’s Red Gum grassy Woodland and Derived Native Grassland exists onsite
Majority of the project site is modified agricultural land. Vegetation along the creekline is minimal. Remnant vegetation on hills
will remain intact and revegetation will occur.
A number of the species listed above may utilise the project site or habitats near the project site. The impact to these species
is expected to be minimal, however the current flora and fauna investigation will determine the likelihood of these species
being onsite, the potential impact and management and mitigation measures to minimise impacts to these species.
Description
Species Description
Terrestrial Species
White-bellied Sea-Eagle (Haliaeetus Coastal seas, islands, estuaries and inlets. Follows major rivers and wetlands far
leucogaster) inland. Huge nests of sticks, usually in tall trees.
White Throated Needletail (Hirundapus Variety of habitats. Aerial forager. Breeds in northern hemisphere, nests in tree
caudacutus) hollows.
Rainbow Bee-eater (Merops ornatus) Open country, most vegetation types, sand dunes, banks.
Black-faced Monarch (Monarcha Rainforests, mangroves and their fringes, wet eucalypt forests, damp gullies.
melanopsis)
Regent Honeyeater (Xanthomyza Phrygia) Eucalypt woodland and open forest on the slopes of the Great Dividing Range.
Wetland Species
Great Egret, White Egret (Ardea alba) Floodwater, rivers, shallows of wetlands, intertidal mudflats.
Cattle Egret (Ardea ibis) Pasture, shallows of freshwater wetlands.
Latham’s Snipe, Japanese Snipe (Gallinago Breeds in Japan. Low rank vegetation around shallows of wetlands, reeds, sedges,
hardwickii) saltmarsh. Summer migrant.
Painted Snipe (Rostratula benghalensis s. Shallow muddy freshwater swamps and marshes.
lat.)
Forktailed Swift (Apus pacificus) Varied; airspace over habitat ranging from rainforest to semi-desert.
There is the potential for a number of these species to occur on or near the site. Many of these species are widespread are
likely to be found on or near the proposed site. The potential impact to these species will be determined during the fauna
investigation, however it is expected that this potential impact will be minimal. The remnant vegetation on hills will remain
intact, revegetation will occur onsite and surrounding vegetation will not be impacted therefore habitat will still be available for
these species.
The Land Management Manual lists the common and associated soils for the various Land Resources Areas (LRAs)
mapping in the area. The common soils associated with the LRAs identified in the project area are:
- Older alluvial plains with black, self mulching cracking clays;
- Basaltic uplands with black to dark brown clay or clay loams on decomposing basalt. Soil depth varies with position on
the slopes. All the soils are susceptible to severe rill and gully erosion; and
- Poplar Box Walloons with black self mulching cracking clays on Walloon sandstone. The soils are susceptible to
sever, sheet, rill and gully erosion.
The majority of the land suited to cultivation has been cleared of vegetation. Remnant vegetation exists on the upper slope
and crest of the basalt hill and plateaus and areas of Walloon sandstone soils. The latest RE map for the area lists a small
area of dominant ‘endangered’ ecosystem of 11.3.21 Queensland Bluegrass and ‘not of concern’ RE 11.8.5 Eucalyptus
orgadophila open woodland.
The groundwater sources in the Project area are the alluvial plains of Hodgson Creek, the Walloon sandstones, the Hutton
(Marburg) sandstones and the basalts. All the groundwater resources in the area have been allocated for use by
landholders. The exploration activities have located groundwater in the overburden over the coal measure continue
hydraulic studies to determine their association with the alluvial of Hodgson Creek. The quality of this water is suitable for
stock but not for irrigation.
- Older Alluvial Plains: Broad level plains of basaltic alluvium with open grasslands;
- Basaltic Uplands: Undulating rises and rolling low hills rising to steep hills with coolibah open woodlands; and
- Poplar Box Walloons: Undulating rises and low hills on Walloon sandstone with popular box open woodlands.
QPWS (EPA) records indicate the presence of the following threatened (rare, vulnerable or endangered) species within 25
km of Felton East, listed under the Nature Conservation Act 1992 (Queensland) and / or Environment Protection and
Biodiversity Conservation Act 1999 (Australia):
These species above are generally associated with native vegetation, and so the remnant natural habitats around Felton
East are of possible significance to them. In contrast; however, a population of the Grassland Earless Dragon
(Tympanocryptis pinguicolla) was discovered in recent years on the Darling Downs to the east of Pittsworth. This species
had been considered extinct in Queensland until its rediscovery, and is now listed as Endangered (NC Act 1992). All
specimens are known from highly modified agricultural land, typically “small holdings devoted to strip-farming of mixed
crops, such as cotton, sorghum, maize and sunflower interspersed with fallow land. Large areas of native and introduced
grasses existing as headlands, and along drainage lines are a feature of the farmlands where the dragon exists” (EPA,
2008: www.epa.qld.gov.au). It is possible this species might also occur in the Felton East area.
Mitigation
Dust generation will be managed by water spraying supplemented with dust suppressant agents when required. Forest
plantations will be established within buffer zone around the processing plant and mine.
The combustion of coal will occur in a pressurised gasification unit, which will convert approximately 95% of the coal’s
carbon into synthetic gas (CO + H2). During the combustion process the ash content of the coal (approximately 20%) with
fuse at the high combustion temperature and drop to the bottom of the gasification module. The syngas generated will
leave the gasifier with a small proportion of particulates. To ensure the complete removal of particulates the syngas stream
will pass through a series of scrubbing units. These will include:
1. Venturi Scrubber
2. Candle Filter
3. Activated Carbon Bed
The Venturi scrubber will contact the gas stream exiting the gasifier with a mist of water. This contact between the gas and
water will capture a large fraction of particulates in the gas stream.
After the scrubber a candle filter unit will be installed to capture the remaining particulate quantity in the stream.
Finally an activated carbon bed will be installed downstream from the candle filter to ensure heavy metals such as mercury
are removed from the stream.
Essentially, the plant will be a zero particulate emitter to the surrounding atmosphere as all particulates will be contained
within the entire process.
Potential odour will be controlled by the development of standard operating procedures to ensure that the air is evacuated
and treated before maintenance is conducted.
CO2 Emissions
The two carbon dioxide emission locations for the Felton DME project will occur in the carbon dioxide gas cleaning unit and
the gas turbine generators. A summary of the carbon dioxide emissions is shown in the table below.
CO2 from Gas Cleaning Unit (CO2 tpd) CO2 Emitted from Gas Turbine (CO2 tpd)
1340 492
Two carbon dioxide intensity values were calculated: kgCO2/kgDME and kgCO2/MWh. The first value relates the amount
of carbon dioxide released in the gas cleaning column per tonne of DME produced. The second value relates the amount of
carbon dioxide produced for every MWh of electricity generated using the remaining syngas from the DME reactor.
If the carbon dioxide stream exiting the cleaning unit is sequestered the only carbon dioxide emission generated from the
plant will occur from the gas turbine. The carbon dioxide emission intensity (with sequestration) in relation to DME
production equals 1 kgCO2/kgDME. If no sequestration is in place the intensity increases to 4 kgCO2/kgDME.
The gas turbine module will receive un-reacted syngas from the DME reactor. The gas exiting the DME reactor will contain
and energy content to power a 43MW conventional turbine set or 66 MW for a gas turbine set utilising a waste heat
recovery. The carbon dioxide intensity for each of the units is shown below:
The intensity of carbon dioxide from these units is one-half to one-third of a conventional coal fired power station. Typical
sub-critical coal fired power stations generate carbon dioxide at approximately 1000kgCO2/MWh.
Mitigation
The process plant configuration can be tailored for production of high purity CO2 gas, which can be used by food
manufacturers and by the oil industry for Enhanced oil Recovery from depleted oil fields such as the Moonie oil field, –km to
the west and connected by a gazetted pipeline corridor passing within –km of the project area.. In additional to potential
CO2 recovery and storage, Ambre Energy is planning to implement the following action to offset CO2 emissions:
- planting of soft and hard wood plantations within the buffer zone around processing plant and mine and on the waste
dumps reclaimed after open cut mining;
- Application of Ambre Energy’s technology and process configurations including concentration and capture of CO2 to
other coal producing regions such as Indonesia, China and India.
Groundwater
Initially mining will intersect ground water resources in the Walloon coal measure and although unlikely, may intersect
groundwater in the alluvials of Hodgson Creek. Eventually aquifers in the basalts may be intersected.
Mitigation
Groundwater studies will be conducted prior to mining operations commencing to quantify aquifers and to ascertain the
impact of mining on these aquifers. The water from these resources if fully allocated to the farming community, and
discussions will be held with DNRW as to the process required to access these resources. Water extracted by the mining
process will be used for such purposes dust suppression.
Surface Water
There is the potential for sediment to enter waterways due to mining operations.
Mitigation
As surface water will be a valuable commodity, runoff will be harvested for re-use where possible. Adequate erosion and
sediment control devices will be constructed onsite and levees will be constructed to retain runoff. Levees will be located to
leave a buffer zone to accommodate flooding. The size of this buffer has been validated with a hydrological study.
Individual work areas with high sediment yield potential such as the Run Of Mine (ROM) will be equipped with sediment
sumps to remove coarse sediment before flowing into large levee sumps.
Runoff from the mining activities will be managed through a series of sediment dams. Drainage lines will be constructed to
direct runoff from unmined areas around the mining and processing operations. Diversion drains will be designed and
constructed using conservative design criteria to minimise water velocities. The water will be retained for recycling.
A hydrological study will be commissioned to identify the changes in flood levels for various flood events. This study will
identify farming areas that may be affected by the proposed development so mitigation measures can be implemented.
Mitigation
The flora and fauna survey will identify the importance of the existing vegetated areas as fauna habitats. The
reestablishment of these native trees that will be linked by vegetation corridors to the adjacent fauna habitats will ensure
that local fauna isn’t impacted by the project. The fauna survey will determine the requirements of management and
mitigation. For example, a spotter catcher may be required for during vegetation clearing.
Specify the key reasons why you think the proposed action is a controlled action (ie. LIKELY to have significant impacts).
It is proposed that the action is a controlled action as the proposal has the potential to have a significant impact on matters
of national significance. There is a small area of threatened ecosystem mapped in the south of the site for stage 2.
There is also the potential to impact threatened species due to potentially impacting the available habitat in the area.
Vegetation on hilltops, revegetation will occur onsite and nearby regional ecosystems may not be impacted by the project,
however there are protected species located on or near the site which could be impacted. A detailed flora and fauna
assessment is currently being undertaken to determine the impacts to these species and areas.
Provide details
Ambre Energy believe that the long-term viability of their company and its projects will depend
on the thoroughness with which they control the impacts of their projects and rehabilitate areas
which they have mined or otherwise affected. Detailed EMPs will be implemented for all their
projects. Rehabilitation forms part of each of their projects.
6.2 Has the party taking the action ever been subject to any proceedings under a x
Commonwealth, State or Territory law for the protection of the environment or the
conservation and sustainable use of natural resources?
6.3 If the party taking the action is a corporation, will the action be taken in accordance x
with the corporation’s environmental policy and planning framework?
6.4 Has the person proposing to take the action previously referred an action under the
EPBC Act? x
7.1 References
• List the references used in preparing the referral.
• Highlight documents that are available to the public, including web references if relevant.
7.3 Attachments
Indicate the documents you have attached. All attachments must be less than two megabytes so they can be published on
the Department’s website. Attachments larger than two megabytes (2mb) may delay the processing of your referral.
9
attached Title of attachment(s)
You must attach figures, maps or aerial photographs
showing the project locality (section 1) X
figures, maps or aerial photographs
showing the location of the project in
respect to any matters of national X
environmental significance or important
features of the environments (section 3)
If relevant, attach copies of any state or local government
approvals and consent conditions (section X
2.3)
copies of any completed assessments to
meet state or local government approvals X
and outcomes of public consultations, if
available (section 2.4)
copies of any flora and fauna investigations
and surveys (section 3) X
technical reports relevant to the
assessment of impacts on protected
matters and that support the arguments X
and conclusions in the referral (section 3
and 4)
report(s) on any public consultations X
undertaken, including with Indigenous
stakeholders (section 3)