Strike Energy Limited · ASX:STX
Strike Energy — CTL & Coal Gasification Conference 2011
30 slides from Strike Energy's conference presentation, Mar 1, 2011
Slide 1: CTL & Coal Gasification Conference Presentation (ASX cover letter)
Strike Energy Limited ABN 59 078 012 745 1 March 2011 For personal use only OUR STRENGTHS The Company Announcement Officer Australian Securities Exchange Ltd • High margin producer via electronic lodgement • Multiple large scale growth options • Experienced team COMBUSTION AND GASIFICATION SUCCESS O
Slide 2: Managing Director comment and JORC compliance statement
Strike Energy Limited ABN 59 078 012 745 1 March 2011 For personal use only Commenting on the presentation to be delivered by Dr Mullinger, Simon Ashton, Strike Energy Limited managing director said: “The project work successfully completed by Strike Energy over the last three years has confirmed th
Slide 3: Kingston Lignite South Australia: Combustion and Gasification Success
For personal use only Kingston Lignite South Australia Combustion and Gasification Success Establishes Valuable Coal Resource CTL & COAL GASIFICATION CONFERENCE 28 FEBRUARY – 1 MARCH 2011 www.strikeenergy.com.au
Slide 4: Disclaimer
DISCLAIMER For personal use only This presentation does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. Reliance should not be placed on the
Slide 5: The Company
The Company For personal use only A successful oil and gas explorer and producer with operations focused on the most productive basins in the USA and Australia Conventional oil and gas CARNARVON Coal Seam Gas ONSHORE GULF COAST (CSG) SOUTHERN COOPER Gas/condensate production and KINGSTON exploration
Slide 6: Location - Kingston Lignite Deposit
Location - Kingston Lignite Deposit – 100% Owned by Strike Energy For personal use only INFRASTRUCTURE + STRATEGIC LOCATION = MARKET ACCESS 4
Slide 7: Kingston Lignite Deposit - History 1979-1986
Kingston Lignite Deposit - History 1979 - 1986 For personal use only 1979 – 1986: Western Mining Corporation (WMC) - Lignite feedstock (5.4Mtpa) for proposed State power generation plant • Identified 985 million tonnes potential resource • Significant & comprehensive geological, geotechnical, hydrol
Slide 8: Kingston Lignite Deposit - Strike Goals 2005-2011
Kingston Lignite Deposit – Strike Goals 2005 - 2011 For personal use only 2005 - 2011: Strike Energy – Investigated lignite combustion and gasification for potential power/chemicals/ transport fuel production • Confirmation of 578 million tonnes JORC Resource • Determination of mining scope and grou
Slide 9: Kingston Lignite Deposit - The Resource
Kingston Lignite Deposit – The Resource For personal use only JORC RESOURCE 2007 (C. Parbury, 2007) • Based on WMC Data – collated by Strike Energy • 950 holes (92 cored), 500m x 500m drill spacing • 2 seams, 27km x 5km wide, flat lying • Main seam ≈8m thick • 20 - 80m overburden Strip Ratio Measure
Slide 10: Mining and Water Management
Kingston Lignite Deposit – Mining and Well Management For personal use only MINING STUDIES – extensive scoping studies • WMC - Strip mining, draglines, bucket wheel excavators and in pit conveyors. Ave. 5.4Mtpa over 37 years, 5 pits • Strike Energy - mining assessments confirm standard dry open cut
Slide 11: Kingston Coal Properties
Kingston Coal Properties For personal use only WMC SAMPLES Property Kingston Gippsland • Substantial samples obtained by WMC (Wt mean) Stored by ETSA Moisture (%) 53.3 60.6 Still in excellent condition in 2010 Volatiles 46.9 50.1 (dry basis %) CV (MJ/kg) 22.7 26.4 (dry basis %) Ash 14.9 2.1 (dry
Slide 12: Kingston Coal Properties - Sodium Issue
Kingston Coal Properties For personal use only • Critical issue is high sodium content Advantage – makes the coal reactive Burns and gasifies easily Disadvantage - causes plant blockages Ash agglomeration and steam tube fouling • Sodium has prevented the use of any SA Lignite's Control of
Slide 13: Combustion Testing
Combustion For personal use only COMBUSTION TESTING • Ash behaviour – 1980s 400 + samples subjected to lab testing by WMC • Germany - 1980 Lab scale tests- 20 t showed coal suitable for PF firing • CE Windsor CT USA – 1983 Demonstrated suitable for PF boilers – 270 t test Provided additives
Slide 14: Circulating Fluid Bed Combustion
Combustion For personal use only CIRCULATING FLUID BED COMBUSTION • Preferred for high sulphur lignite Coal is coarsely crushed and burnt in concentrated suspension Permits in-bed control of SO2 emissions Requires free-flowing bed Potential for efficient electricity generation Foster Wheeler
Slide 15: Combustion Testing - Lab Scale System
Combustion For personal use only Viewing Port Vent COMBUSTION TESTING Cyclone 2 • Lab scale circulating fluid combustion Coal Cyclone 1 Hopper system Coal feed and bed withdrawal Fly Ash Can Screw permitted continuous operation CFB Reactor Feeder Bed material and additives pre-mixed with coal
Slide 16: Combustion Test Results
Combustion For personal use only 1000 1000 COMBUSTION TEST RESULTS 800 800 • Very high carbon burnout at 810-850oC 600 600 T ∆P Ash very light grey colour & carbon (o C) (Pa) undetectable 400 400 • Continuous operation achieved with Bed Temperature (°C) 200 200 Temperature above bed (°C) sand bed
Slide 17: CFBC Electricity Generation
Combustion - CFBC Electricity Generation For personal use only POTENTIAL ELECTRICITY GENERATION • 350 MW facility • Early commercial production SIGNIFICANT ENVIRONMENTAL BENEFITS • Reduced CO2 emissions • More efficient than existing SA coal fired power stations Approx. Emissions Power Station Fuel
Slide 18: Gasification - U-Gas Fluid Bed Gasifier
Gasification For personal use only GASIFICATION – the route to chemical products • U-Gas fluid bed gasification chosen Potentially maximises hydrogen from volatiles & inherent moisture Impeccable pedigree Developed by the Gas Research Institute near Chicago In operation in USA & China Many
Slide 19: Gasification Testing
Gasification For personal use only GASIFICATION TESTING • To determine operating conditions for successful utilisation of circulating fluid bed gasification Bench scale testing to determine conditions for continuous operation: Suitable bed material Suitable temperature operating window Semi-
Slide 20: Gasification Bench Scale Work
Gasification For personal use only BENCH SCALE WORK • To determine operating conditions for successful utilisation - 25 tests Sand bed used with drainage and renewal Agglomerates containing silica formed at 810 to 860oC Higher T > harder agglomerate Kaolin reduces agglomeration • Continuous
Slide 21: Bench Scale Results - SEM Micrographs
Gasification For personal use only BENCH SCALE RESULTS • SEM micrographs of bed material Sand bed material coated with ash Agglomerate in bed material Gasification temperature 810 oC Gasification temperature 810 oC MODERATE TEMPERATURES ACHIEVED 19
Slide 22: Bench Scale Results - Additives
Gasification For personal use only BENCH SCALE RESULTS • Bed material after 20 hours operation at 830 oC 5% kaolin addition - 5% bed removal Joint material mainly low melting point sodium silicates Addition of kaolin forms high melting point nepheline Bed material at end of test Enlargement of
Slide 23: Semi-Industrial Scale Results
Gasification For personal use only SEMI-INDUSTRIAL SCALE RESULTS • Full circulating fluid bed unit complete with On-line bed removal& replenishment Gas cooling, conditioning & sampling Afterburner • Tests demonstrated Gas composition Effect of longer residence time on ash agglomeration The
Slide 24: Effect of Bed Temperature on Gas Quality
Gasification For personal use only SEMI-INDUSTRIAL SCALE RESULTS • Effect of bed temperature on gas quality & quantity Air/Fuel =2.1, Steam/Fuel=0.7 (inc. coal moisture) A/F=2.1, S/F=0.7 A/F=2.1, S/F=0.7 20 700 T=800oC T=800oC T=830oC T=830oC 600 T=850oC T=850oC 16 500 per kg of dry ash free coal
Slide 25: Effect of Steam/Fuel Ratio on Gas
Gasification For personal use only SEMI-INDUSTRIAL SCALE RESULTS • Effect of steam/fuel ratio on gas quality & quantity Air/Fuel =2.3, Bed temperature 850oC - 5% clay addition T=850oC, A/F=2.3, 5% DV clay T=850oC, A/F=2.3, 5% DV clay 30 1200 S/F = 0.4 S/F=0.4 S/F = 0.7 S/F=0.7 25 S/F = 1.1 1000 S/
Slide 26: Ash Behaviour
Gasification For personal use only SEMI-INDUSTRIAL SCALE RESULTS • Ash behaviour – ash analysis is ongoing Agglomeration does occur but is controllable U-Gas Gasifier uses controlled agglomeration for ash handling so is preferred full scale gasifier Close up of agglomerated particles Coal bed ma
Slide 27: Gasification - Process and Products
Gasification - Process and Products For personal use only POWER, FUELS AND CHEMICAL PRODUCTS 25
Slide 28: Kingston Lignite Deposit - Targets Achieved 2011
Kingston Lignite Deposit – Targets Achieved 2011 For personal use only • Confirmed significant 578 million tonnes JORC Resource • Finalised mining scope and groundwater modelling • Confirmed suitability of Kingston lignite for combustion and gasification purposes • Selected combustion and gasi
Slide 29: Kingston Lignite Deposit - Summary
Kingston Lignite Deposit - Summary For personal use only • 100% permit ownership and operatorship of a large coal resource • Strategic location in close proximity to major infrastructure and market access • Very large well defined coal deposit – 578 million tonnes JORC compliant (original pre JORC e
Slide 30: JORC Compliance Statement
JORC Compliance Statement For personal use only The Kingston coal resource included in this report is located at Kingston, in South Australia, and has been classified and reported in accordance with the JORC code. The JORC resource estimate is comprised of 523.5 million tonnes of Measured Resources
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