Coal to play a role

ON top of the $93 billion in major resources projects under way, a number of spin-off developments are planned to take advantage of the long-term growth in Western Australia's resources sector.

Perdaman Chemicals & Fertilisers' proposed $3.5 billion coal-to-urea project at Collie, slated to start production in 2013, is arguably Australia's most significant clean coal and carbon capture project.

Using state-of-the-art coal gasification technology, Perdaman will convert 2.7 million tonnes of low-rank coal into 2mt of high-quality urea granules worth $850 million a year.

It also represents one of Australia's largest potential carbon capture and storage projects.

While a third of the contained carbon stays locked in the urea, most of the remainder can be collected during the gasification phase, either for storage or further chemicals manufacture.

If studies into the suitability of nearby geological structures for underground carbon storage are positive, Perdaman aims to sequester up to 2.5mt a year.

The Collie project will also have a massive impact on the local economy, generating 1,500 construction jobs, and 600 full-time positions at the site and in related activities.

The electricity sector is also preparing for a major expansion to cater for WA's growing resources sector.

In Collie, Griffin Energy is planning to double the size of its Bluewaters coal-fired power project with the addition of two additional coal-fired generation units, subject to winning contracts in Synergy's imminent 2011 power procurement tender.

In the Mid West, Aviva Corporation hopes to commission its proposed $1.3 billion Coolimba coal-fired power plant at Eneabba by 2013, feeding into the state's main network as well as supplying new industrial demand in the surrounding region.

And nearby at Dongara, Eneabba Gas is awaiting final customer contracts to start construction of its 168MW Centauri-1 gas fired power plant to directly supply new mining customers in the Mid West.

Eneabba's unique proposal involves underground gasification of deep coal reserves nearby, and potential carbon geosequestration in depleted gas fields close by.