Stuart Oil Shale Project

Stuart oil shale pilot plant (2004, now dismantled). Photo: Greenpeace
Location of Stuart Oil Shale Project
Country Australia
Locale Gladstone, Queensland
Coordinates

23°47′12″S 151°08′49″E / 23.786652°S 151.146809°E / -23.786652; 151.146809Coordinates: 23°47′12″S 151°08′49″E / 23.786652°S 151.146809°E / -23.786652; 151.146809{{#coordinates:-23.786652|151.146809|type:landmark|||||| |primary |name=

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Status dismantled
Construction began 1999
Decommission date 2004
Owner(s) Queensland Energy Resources
As of 28 October 2010

The Stuart Oil Shale Project is an oil shale development project in Australia near Gladstone, Queensland. It was Australia's first major attempt since the 1950s to restart commercial use of oil shale.[1] The project was originally developed by Australian companies Southern Pacific Petroleum NL and Central Pacific Minerals NL (SPP/CPM).

History

In 1997 SPP/CPM signed a joint venture agreement with the Canadian company Suncor Energy to develop the Stuart oil shale deposit.[2] Suncor was designated as the project operator. In April 2001, Suncor left the project and SPP/CPM became the sole shareholder of the project. In February 2002, due the restructuring of SPP/CPM, SPP became the holding company for the group's interests, including the Stuart Oil Shale Project. As SPP had granted fixed and floating charges in favour of Sandco Koala LLC in May 2003, the chargee appointed receivers of SPP on 2 December 2003.[3] In February 2004, the Stuart Oil Shale Project was sold by receivers to the newly formed company Queensland Energy Resources.[2][4] The plant was shut down on 21 July 2004 because of economic and environmental reasons.[4][5]

On 14 August 2008, Queensland Energy Resources announced that it has shunned the Alberta Taciuk Processor (ATP) oil shale processing technology in favor of the Paraho II technology and that the ATP technology-based pilot plant is being dismantled, and obsolete components are being sold.[4]

Industry

The first stage of the project, which cost A$250–360 million, consisted of an oil-shale mine and pilot retorting plant, which was constructed in 1997-1999.[2][6] The plant, which was in operation from 1999 to 2004, used the ATP retorting technology being the first application of the ATP technology in the world on oil shale.[7] The plant was designed to process 6,000 tonnes of oil shale per day with oil output of 4,500 barrels (720 m3).[2] From 2000 to 2004 the pilot plant produced over 1.5 million barrels (240×10^3 m3) of shale oil. After the closure the facility is kept on care-and-maintenance in an operable condition.[8]

The second stage with cost of A$600 million was planned to consist of a single commercial-size module four times larger than the first with total capacity of 19,000 barrels (3,000 m3) of oil products (naphtha and medium shale oil) daily. Originally it was planned to become operational in 2006. The third planned stage was construction of multiple commercial production units with capacity of up to 200,000 barrels of oil products per day.[2] It was envisaged to come on stream during 2010–2013. The environmental impact assessment of stage 2 was suspended in December 2004.[9] By April 2008, plant equipment at the site was being sold off.[10]

Controversy

The project was heavily criticized by environmentalists. Over 20,000 people and 27 environment, tourism and fishing groups opposed the shale oil plant.[9] Greenpeace claimed that greenhouse emissions from the production of shale oil are nearly four times higher than from the production of conventional oil. In response, SPP promised to reduce greenhouse emissions from production of shale oil to 5% below those of conventional oil by stage 3. Greenpeace also claimed that the Stuart Oil Shale Project is a significant source of highly toxic dioxins and would damage the Great Barrier Reef World Heritage Area during stage 3. Public health concerns were also mentioned.[11] Local residents claimed dioxins emitted from the plant affected their health and that the odour was unacceptable.[12]

See also

References

  1. "Petroleum and gas production". Department of Natural Resources and Water of Queensland. Archived from the original on 30 April 2007. http://web.archive.org/web/20070430142029/http://www.nrw.qld.gov.au/mines/petroleum_gas/index.html. Retrieved 2007-07-20.
  2. 2.0 2.1 2.2 2.3 2.4 Script error
  3. "Esso Australia Resources Pty Ltd v Southern Pacific Petroleum NL. Corporate law judgments. No. 2051 of 2004". University of Melbourne. Centre for Corporate Law & Securities Regulation. 2004. http://cclsr.law.unimelb.edu.au/judgments/states/vic/2004/november/2004vsc477.htm. Retrieved 2007-07-24.
  4. 4.0 4.1 4.2 Script error
  5. "Victory: shale oil project collapses" (Press release). Greenpeace. 2004-07-21. http://www.greenpeace.org/international/en/news/features/shale-oil-victory/. Retrieved 2010-10-28.
  6. "Stuart Oil Shale - Stage 2". Department of Infrastructure and Planning of Queensland. 2007-07-15. http://www.dip.qld.gov.au/projects/energy/oil/stuart-oil-shale-stage-2.html. Retrieved 2010-10-28.
  7. "Stuart Oil Shale project ready for restart". Alexander's Gas & Oil Connections. 2000-01-31. http://www.gasandoil.com/goc/company/cns01260.htm. Retrieved 2007-07-20.
  8. "Shale oil. AIMR Report 2009". Geoscience Australia. http://www.australianminesatlas.gov.au/aimr/commodity/shale_oil_09.jsp. Retrieved 2010-10-28.
  9. 9.0 9.1 "Climate-changing shale oil industry stopped" (Press release). Greenpeace Australia Pacific. 2005-03-03. http://www.greenpeace.org/australia/news-and-events/media/releases/climate-change/climate-changing-shale-oil-ind. Retrieved 2007-06-28.
  10. "Oil plant equipment up for sale". ABC News Online (Australian Broadcasting Corporation). 21 April 2008. http://www.abc.net.au/news/stories/2008/04/21/2223408.htm. Retrieved 8 November 2010.
  11. Greenpeace Australia Pacific (2003-10-01). "Stuart Oil Shale Project" (PDF). http://www.greenpeace.org/raw/content/australia/resources/fact-sheets/climate-change/stuart-oil-shale-project.pdf. Retrieved 2007-06-28.
  12. "Plan brings back sick memories". Daily Mercury (APN News & Media Ltd). 19 July 2008. http://www.dailymercury.com.au/story/2008/07/19/apn-plan-brings-back-sick/. Retrieved 8 November 2010.