Opportunity for cleaner energy
CSG contributes to Queensland’s current and future electricity needs whilst emitting 50% fewer greenhouse gases than coal.
Exported Queensland CSG will also play a key role in meeting the energy requirements of Asian countries, either as a clean‑burning fuel for cooking and heating or as a lower‑carbon large‑scale alternative to coal for generating electricity.
Like all forms of natural gas, coal seam gas requires much less water and creates much less local air pollution than coal when used directly or to generate electricity.
You can find more information on each of these topics in the sections that follow.
We need cleaner energy
Our global population is growing and developing countries like China and India are rapidly expanding their economies. At the same time many countries including Australia have greenhouse gas reduction targets to reduce the likelihood of serious climate change impacts. We also want affordable energy to run our economies and maintain our standard of living and we need reliable baseload energy supply.
Australia and the world are demanding a cleaner, reliable energy supply to run our economies and meet our standard of living expectations.
Demand for energy is growing strongly
The demand for energy is growing significantly and this demand cannot be met by one source alone. According to the International Energy Agency’s World Energy Outlook 2011, renewable energy technologies, led by hydropower and wind, will account for half of the new capacity built to meet growing demand. Overall, renewables are predicted to grow faster than any other energy form in relative terms, but their total supply will remain less than that of fossil fuels. Natural gas is the only fossil fuel predicted to increase its share in the global mix over the period to 2035.
Gas reduces carbon emissions
This is why coal seam gas has an important role to play, both here and overseas. Gas is often called a transitional fuel - as we move from carbon intensive energy sources to a low carbon future. Gas is cost effective, can be used for baseload power and has significantly lower carbon emissions when compared to other traditional fossil fuels, such as coal.
Gas is also a highly flexible fuel so it is used to meet electricity demand at peak times and when there are unexpected spikes in demand or supply. Its flexibility means that gas plays an important role as a companion fuel to intermittent renewable sources such as wind and solar.
Some people would like Australia and the world to run solely on renewable energy. In many countries we are seeing a range of renewable energy technologies increasingly being used. However, today, in most countries the choice for baseload power generation continues to be fossil fuels, with gas a lower carbon emissions alternative to coal.
Carbon emissions reduction in Australia from CSG
It is universally accepted that gas is a more efficient burning fuel than coal, typically releasing less than half the carbon emissions when used in a power plant to generate base load electricity. There is less certainty, for both gas and coal, about the carbon emissions from supply chain fuel extraction, processing and transportation activities, but these emissions are small compared to the emissions from combustion.
Electricity generation from natural gas has less than one third the emissions of brown coal and less than half the emissions of black coal.
Gas emissions are lower than coal
There has been recent interest in the “lifecycle” emissions of gas and coal for generating electricity. A lifecycle analysis accounts for the emissions not just from burning fuel in a power station, but also from extracting the fuel from wells (for gas) and mines (for coal) and then processing and transporting the fuel to the power station.
Studies of lifecycle emissions reinforce the conclusion that new or replacement baseload gas fired power generation is a better option than coal. For example a 2009 ACIL Tasman lifecycle emissions study found that Origin Energy’s Darling Downs gas power station has an emissions intensity (0.42 tCO2e per MWh) which is less than half that of the most efficient coal fired power station currently in operation in Australia, which is the super critical Tarong North Power Station in Queensland (with an emissions intensity of 0.86 tCO2e per MWh). [ACIL Tasman report prepared in April 2009, section 3.3 page 30]
The chart shows that electricity generation from natural gas has less than one third the emissions of brown coal and less than half the emissions of black coal[1] . The natural gas generator with the lowest carbon emissions in Australia is fuelled by CSG.
For a more detailed discussion of this topic, read this press release by Origin.
1 Based on lifecycle data sourced from ACIL Tasman. The chart shows the lowest emissions generator for each class of electricity generation.
CSG to LNG can also contribute to emission reductions overseas
When considering the carbon emissions impact of LNG, it is important to consider the carbon footprint of the entire process from extracting CSG through to LNG processing and its eventual use for energy overseas. WorleyParsons recently undertook a lifecycle analysis that included emissions from extraction, processing, transmission and liquefaction in Australia, transport by ship to China and processing, transmission and combustion in China. The report found that the total lifecycle emissions from LNG when used for baseload electricity generation are 47% less than those generated from conventional coal fired power stations.
WorleyParsons found that for every tonne of carbon emitted in Australia from LNG production, 4.3 tonnes are avoided globally when LNG is used for power generation in China instead of coal.
Gas is better than the most efficient coal
In many countries conventional coal fired power stations are being superseded by more efficient technology. WorleyParsons found that even when compared to the most efficient coal fired power stations proposed or under construction, emissions from baseload gas fired power stations supplied with LNG are 30% less than coal.
LNG lowers emissions globally
The Australia Pacific LNG Project will result in increases in greenhouse gas emissions in Queensland and Australia but will reduce greenhouse gas emissions globally when LNG is used in place of coal. WorleyParsons found that for every tonne of carbon emitted in Australia from LNG production, 4.3 tonnes are avoided globally when LNG is used for power generation in China instead of coal.
Gas-fired power also has clear benefits in terms of water use and local air quality
With low levels of combustion emissions and water use when used to generate electricity, natural gas is a key component in developing a future sustainable energy mix.
Natural gas is a very safe and clean burning fuel that uses less water than coal for electricity generation and greatly reduces urban pollution.
Gas uses less water than coal
Origin Energy’s Darling Downs power station uses 97% less water than conventional water cooled coal fired power stations (the vast majority of power stations in Australia) and 70% less water than air cooled coal fired power stations (such as the more recently commissioned Millmerran station in Queensland).
Gas reduces air pollution
Unlike burning coal, natural gas results in very low emissions of nitrogen oxides and sulphur dioxide (reducing acid rain and smog) and has virtually no emissions of mercury, particulates (soot) or other solid wastes. Many major cities in the world have serious smog and air pollution problems from burning coal, oil and wood. Natural gas is a very safe and clean burning fuel that greatly reduces urban pollution.