PERTH (miningweekly.com) – Queensland Premier Campbell Newman used the opening of a A$200-million micro-liquefied natural gas (LNG) plant to launch the state’s new fuels and energy strategy.

The Premier revealed that some A$500-million would be made available to energy companies through an innovation fund to encourage next generation clean fuel and energy.

“Our state has vast energy resources, but instead of just exporting those reserves I want Queenslanders to find new ways of developing cleaner and greener fuels,” Newman was quoted as saying.

“If just a fraction of our trucking firms, mines and farms switched to domestically-produced fuels, we would see more jobs for our kids and lower emissions too.”

The innovation fund would be financed through the leasing of state-held power and port assets.

The Queensland Resources Council (QRC) has welcomed the investment into the state’s next wave of liquid fuel production, with CEO Michael Roche saying that encouraging the state’s fledgling liquid fuel industries would ensure Queensland was strategically positioned to take advantage of evolving domestic and global energy needs.

“The state government is to be congratulated for identifying the strategic and economic opportunities of responding proactively to Australia’s growing oil import dependency,” Roche said.

Despite the current easing in oil prices, Australia is forecast to have a yearly imported fuel bill of A$30-billion by 2015, rising potentially to A$90-billion by 2030, Roche pointed out

“The government’s announcement of a A$500-million Strong Choices Innovation Fund to develop next-generation fuel sources is a positive step towards insulating the state and potentially the east coast against the risks associated with imported fuel supply chains,” he said.

Meanwhile, Roche also congratulated BOC Gases on its investment in the micro-LNG plant at Chinchilla, saying it gave local and interstate manufacturing, off-grid electricity generators and heavy transport users the option of switching to LNG.

The micro-LNG plant and supply chain infrastructure by BOC will produce up to 50 t/d of LNG into the domestic market, which is the equivalent of 70 000 l/d of conventional diesel.

BOC, a member of the Linde Group, has entered into a long-term gas supply agreement with natural gas producer QGC, to supply natural gas which BOC will liquefy, producing LNG, for a range of domestic fuel uses in the manufacturing, mining and long-haul trucking markets.

The gas will also be available for use in the stationary energy sector and for cleaner power generation in remote communities.

BOC South Pacific MD Colin Isaac said the plant heralded a positive new era for cleaner fuel in Queensland that also used Australian design and construction expertise in LNG fuel production.
 
“LNG produces up to 25% fewer emissions than diesel when used for transport and is a proven, safe alternative to other fossil fuels. It is also ideal for marine vessels and is Great Barrier Reef friendly because unlike diesel and marine oil it evaporates if spilled, with no toxic effects,” Isaac said.