In June, Shell Gas & Power was selected as the preferred provider of coal gasification technology for a proposed coal gasification power project in Queensland. Shell and the Queensland Government-owned Stanwell Corporation have commenced a study for an Integrated (coal) Gasification Combined Cycle (IGCC) power project with carbon dioxide sequestration (underground storage). The process converts coal into synthesis gas, removing carbon dioxide to produce hydrogen rich fuel, which can be consumed by turbines to generate electricity. This could be the world’s first IGCC power generation plant where nearly all carbon dioxide generated would be captured and geo-sequestered.

“Shell is proud to be selected as the preferred technology provider for this cutting-edge project. We initially pioneered our coal gasification process in the Netherlands and it has since achieved huge success in China where 12 different licences have been sold over the past two years”, said Shell Gas & Power Executive Vice President, Asia, Peter de Wit. “We believe the process offers cleaner energy solutions for Australia’s coal industry and boasts impressive greenhouse gas incentives by lowering carbon dioxide emissions.” In June the coal gasification project was in the feasibility study phase with Shell assisting in preparation of the technical input for the plant. The study is scheduled to finish in October 2005 and if the project goes ahead, Shell will provide gas treating technologies, as well as the coal gasification technology.

This coal gasification technology was developed by Shell and is a process where coal is milled, dried and pulverised, and then fed into a gasifier reactor where at high pressure and temperature it is converted into synthesis gas. The raw synthesis gas is then treated and can be used for power generation, chemical feedstock, hydrogen production or further synthesis into ultra-clean transportation fuels. The company is currently constructing a coal gasification plant in Dongting, China, in a joint venture with Chinese energy company Sinopec.