01/08/2007 - Cool Energy signs agreement for first commercial plant study
Cool Energy has moved its innovative CryoCell gas processing technology one step closer to commercialisation after signing a heads of agreement with Great Artesian Oil and Gas to conduct a feasibility study for its first commercial plant.
The proposed plant will be capable of treating 20 million standard cubic feet of gas per day (MMscfd) and produce sales gas, LPG and condensate, as well as capture and store carbon dioxide (geo-sequestration).
The plant will be one of the first to use the new CryoCell gas processing capture and storage technology developed by Cool Energy and proven in their tests and field trials over the past two years at ARC Energy's Xyris Gas Field in the Perth Basin in WA.
Cool Energy Managing Director Jessie Inman believes the signing of the agreement between the two companies to study the feasibility of constructing a CryoCell® gas processing plant is the first step in the commercialisation of this pioneering technology, following field trials that are nearing completion.
"We believe this technology provides a strategic advantage for Australia to reduce CO2 emissions quickly. The CO2 comes off our process as a liquid and can be immediately pumped for geo-sequestration. This first project will have CO2 sequestered within 2 years that would have otherwise been vented to atmosphere", said Ms Inman. "This technology not only has the potential to unlock previously uneconomic gas reserves, but ultimately will give natural gas very strong ‘green' credentials in a decarbonised energy future."
The potential project development would involve production wells, a gathering system to feed gas and condensate into a central facility, processing the gas by dehydration, capture and sequestering of CO2, followed by separation of condensate and LPG, before sales gas compression and transmission via the main gas pipelines to Adelaide and Sydney.
Cool Energy media release:
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