Project history

Previous Felton Clean Coal Demonstration Project

In early 2009, draft Terms of Reference were released for a 3.8 Mtpa open-cut coal mine and 15,000 tonne per annum dimethyl ether (DME) pilot plant at the Felton site.

Called the Felton Clean Coal Demonstration Project, Ambre Energy proposed investing substantially in new technology and processes to produce a hydrogen-rich syngas to fuel a power plant and produce DME, a 'next generation' diesel alternative.

In response to global economic conditions, ongoing market assessments and a drive for continuous improvement, the project was changed fundamentally.

Ambre Energy took a commercial decision to apply fully proven coal-to-liquids technology at the site; ambreCTL replaced the proposed Felton DME project and an announcement was made in March 2010.

The footprint, technology and scale and scope of the project tjerefore changed. A larger open-cut mine and full-capacity unleaded petrol facility were subsequently proposed.

There was no longer any need for a demonstration or pilot stage. The new project will be constructed at full scale, which is required for an appropriate commercial return and to respond to potential fuel shortages.

The state government requires a separate approval process for this new project to reflect the nature of the project’s potential impacts.

The Environmental Impact Statement (EIS) process for the Felton DME project has been withdrawn and the new process is ongoing.

Key project differences

	Felton demonstration project	ambreCTL
Description	455 tonnes per day dimethyl ether (DME) pilot plant to demonstrate new technology coal gasification plant (above ground) and demonstration-scale reactor	18,000 barrels of unleaded petrol per day 940 ML/yr commercial-scale coal gasification facility, proven technology
Scale and scope	mine developed in two stages, eventually expanding to 3.8 Mtpa	full scale commercial capacity
Feed coal (source)	0.8 Mtpa from adjoining Ambre Energy open-cut coal mine	8.0 Mtpa coal and interburden material extracted, crushed and washed each year to supply 4.0 Mtpa of feed coal
Technology	gasify coal and convert resulting syngas to DME, a cleaner diesel replacement	gasify coal and convert resulting syngas to methanol convert methanol to zero-sulphur unleaded petrol and LPG, using ExxonMobil MTG technology
Estimated capital expenditure	around $485 million	more than $3.5 billion, mostly invested in the first three to four years
Direct employment	600 jobs during construction 125 ongoing jobs	1,880 jobs during peak construction averaging 1,170 over two year period 530 ongoing jobs in the Darling Downs, 1,600 jobs ongoing Australia-wide