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Gold/Mining/Energy : Gasification Technologies -- Ignore unavailable to you. Want to Upgrade?

To: johnlw who wrote (1482)	7/23/2008 2:16:47 PM
From: Dennis Roth	Read Replies (1) \| Respond to of 1740

Alter NRG plans C$4.5 billion coal-to-liquids plant Tue Jul 22, 2008 6:01pm BST uk.reuters.com [ Welcome back Johnlw. Nice to see some else post on this thread for a change ] CALGARY, Alberta, July 22 (Reuters) - Alter NRG Corp (NRG.V: Quote, Profile, Research), a small alternative energy firm, said on Tuesday it plans to build a C$4.5 billion ($4.46 billion) coal-to-liquids plant in northwestern Alberta to produce diesel and naphtha fuels and capture carbon dioxide. Alter NRG, which went public 15 months ago, will develop a coal mine near Fox Creek, Alberta, 260 kilometers (162 miles) northwest of Edmonton, and build a plant to convert the coal into as much as 40,000 barrels per day of diesel and naphtha, which is blended with heavy oils so they can be shipped on pipelines. The plant would be a first in Canada, but coal-to-liquids technology is used worldwide, particularly in South Africa, where Sasol (SOLJ.J: Quote, Profile, Research)is the world's biggest producer of fuel from coal. Best known for its massive oil sands, the biggest oil reserves outside of the Middle East, Alberta also has the lion's share of Canada's coal deposits, with proven reserves of 33.6 billion tonnes. Alter NRG, which has a market capitalization of less than C$250 million, is hunting for a partner to help develop the project, and seeks mining, energy and gasification firms willing to take a stake. "We want to find a partnership (or) joint-venture structure or even a separate entity and then that partnership will look to capitalize the project," said Daniel Hay, Alter NRG's chief financial officer. Hay said Alter NRG thinks operating costs to produce a barrel of diesel fuel using the coal-to-liquids technology will range between C$25 and C$30 a barrel and capital costs will be between C$12 to C$18 a barrel and generate returns higher than 20 percent. The company plans to develop the project in two, 20,000-barrel-per-day phases. Construction of the first phase, which would cost C$2.7 billion, would see a mine operating by 2013 with the CTL plant complete a year later. Alter NRG also plans to capture most of the carbon dioxide emitted by its plant. The company said the CO2 may be used to boost oil output from about 30 fields near its planned facility. "Within 60 miles of Fox Creek are some of the largest light oil fields in Canada that are actively looking for CO2 injection to increase their oil recoveries," Hay said. Alter NRG shares fell 14 Canadian cents to C$4.25 on the TSX Venture Exchange. The stock has climbed 56 percent over the past 12 months. ($1=$1.01 Canadian) (Reporting by Scott Haggett; Editing by Bernadette Baum)

To: johnlw who wrote (1482)	7/23/2008 2:31:37 PM
From: Dennis Roth	Respond to of 1740

Alter NRG Plans C$4.5 Billion Coal-To-Liquids Project (Update2) bloomberg.com By Ian McKinnon July 22 (Bloomberg) -- Alter NRG Corp. plans to build Canada's first plant to convert coal into transportation fuels for $4.5 billion ($4.46 billion). The plant, located about 150 miles (241 kilometers) northwest of Edmonton, may produce as much as 40,000 barrels a day of fuels including diesel, according to a disclosure document on the Calgary-based company's Web site. The project will likely be developed in stages, with the first phase producing about 20,000 barrels a day. The technology has been around for decades and the project is based on oil selling for $80 a barrel, Alter NRG Chief Executive Officer Mark Montemurro said. ``We think it's a very robust project,'' he said today in telephone interview. Record oil prices exceeding $140 a barrel are encouraging companies worldwide to consider projects that convert coal or natural gas into transportation fuels. Royal Dutch Shell Plc's multibillion dollar gas-to-liquids refinery in Qatar will start in 2010, the country's energy minister has said. Alter NRG owns four leases near the town of Fox Creek that contain an estimated 468 million metric tons of proven and probable coal reserves. A processing unit will convert the coal into diesel and naphtha, according to the disclosure document. The company is looking for partners, particularly those with refining and marketing expertise, and is unlikely to own a majority stake in the project, said Montemurro, 47. The former executive at Deer Creek Energy Ltd., a Canadian oil-sands producer sold in 2005 for C$1.67 billion to France's Total SA, declined to identify possible partners. Target Dates The project's environment and engineering studies will be conducted in 2008 and 2009, and a regulatory application will likely be filed late next year, Alter NRG said. If approval is obtained in 18 months, mining operations may start in 2013 and the refinery-like plant may begin processing fuels in early 2014. About 85 to 90 percent of the plant's carbon dioxide, a gas linked to global warming, will be captured and stored, Montemurro said. The company may sell some carbon dioxide to oil producers for injection underground to boost pressure and production at aging fields in the area, he said. The company was formed in 2006 and sold an initial offering of shares last year at C$2.25, Montemurro said. Alter NRG rose 29 cents, or 6.6 percent, to C$4.68 in Toronto Stock Exchange trading. The stock has climbed 44 percent this year. To contact the reporter on this story: Ian McKinnon in Calgary at imckinnon1@bloomberg.net. Last Updated: July 22, 2008 16:23 EDT

To: johnlw who wrote (1482)	7/23/2008 2:35:28 PM
From: Dennis Roth	Respond to of 1740

Calgary upstart to turn coal into liquid fuel Alter NRG plans to build $4.5-billion coal-to-liquids plant that would produce 40,000 barrels a day of fuel by 2014 theglobeandmail.com NORVAL SCOTT July 23, 2008 CALGARY -- For most energy companies, figuring how to best turn Alberta's vast oil sands into lucrative gasoline is challenging enough. But Alter NRG Corp. is looking to go one better. The Calgary-based upstart said yesterday that it's seeking to develop a project in Alberta that would turn coal into liquid petroleum fuels. The $4.5-billion plant, which will produce 40,000 barrels a day of fuel by 2014, would be the first of its kind in Canada. "Local market conditions make producing diesel and naphtha [from coal] most attractive," Alter NRG chief executive officer Mark Montemurro said in an interview. "We'd be producing a very high-quality product." Alter NRG, which is listed on the TSX Venture Exchange, plans to build its plant at the coal reserves it owns near Fox Creek, northwest of Edmonton. In addition to producing diesel and naphtha - a heavy oil product used for paving roads, as well as for diluting bitumen from the oil sands - the project would produce carbon dioxide that could be used in mature oil fields to increase production. Turning coal into liquid fuel is a technology that was first developed in the 1920s, and was used by coal-rich Germany to produce synthetic diesel during the Second World War. South Africa, shunned during its apartheid years by potential trading partners, has also long used coal-to-liquids methods (CTL) to produce domestic fuel. Although the technology, which involves gasifying the coal and then turning that product into a liquid, produces both a low level of emissions and a product that's effectively sulphur-free, the capital costs of development are expensive. Each flowing barrel of CTL production would cost Alter NRG $110,000 to bring on stream, an amount comparable to the most expensive oil sands projects. While Mr. Montemurro acknowledged that the upfront construction costs are steep, the operating costs of the CTL plant would be one-quarter of an oil sands mine and upgrader, creating a project with strong cash flows, he said, adding that the company expects to make announcements on operating and financial partners later this year. ALTER NRG CORP. (NRG) Close: $4.68, up 29¢

To: johnlw who wrote (1482)	8/1/2008 8:14:09 AM
From: Dennis Roth	Respond to of 1740

Alter NRG plans Canada’s first coal-to-liquid fuel plant RICHARD GILBERT staff writer July 30, 2008 journalofcommerce.com It may not be as miraculous as making wine out of water, but an Alberta-based company is planning to make fuel from coal. Alter NRG Corp. plans to develop coal reserves in the Fox Creek area of Alberta by building Canada’s first plant to convert coal into liquid fuel. The company holds the lease to four Crown coal fields located north of Fox Creek township (about 27 kilometres northeast of Fox Creek), between Edmonton and Grande Prairie. A Public Disclosure document shows that the company proposes to mine a reserve of about 301 million tonnes of coal using established surface mining technology, and then through gasification and other processes, to produce diesel fuel and other flammable liquids. The $4.5 billion plant would be the first facility in Canada to combine the use of Coal to Liquids (CTL) technology with carbon dioxide (CO2) capture. “Alter NRG is concerned about reducing the energy industry’s carbon footprint. As the first coal to liquids project in Canada, the project will be a significant, long-term contributor to Alberta’s economy as well as set a precedent for clean energy solutions,” said Mark Montemurro, president and CEO of Alter NRG. One of the main reasons Alter NRG decided to develop their Fox Creek coal field was that it is close to infrastructure and mature oil fields that could benefit from enhanced oil recovery (EOR) by the injection of CO2. “The project intends to seek sales opportunities for produced CO2 into the anticipated EOR market,” states the disclosure document. “In the event that not all CO2 can be disposed of in this way, the project plans to sequester remaining CO2 in deep saline aquifers or in depleted oil or gas pools.” The company said it plans to capture and sequester more than 85 per cent of the CO2 produced in the proposed project. Engineering and environmental studies will be carried out during the remainder of 2008 and all of 2009. The studies will form the basis of the Environmental Impact Assessment for the project. It is anticipated that submission of the application will be followed by an 18 month regulatory review period. Construction of the CTL plant is scheduled to begin soon after receipt of all necessary approvals. Gasification allows for the removal of harmful contaminants from the coal, which helps produce cleaner energy. The gasifier will convert solid coal feedstock into synthesis gas, which is a mixture of carbon monoxide and hydrogen, and is commonly referred to as syngas. The syngas will be further processed into liquids, with an emphasis on low sulphur, high-cetane diesel, but will also co-produce naphtha. This part of the project will also use established CTL technology. The project will be developed in at least two stages, with the first stage producing about 20,000 bbls/d. It is anticipated that a capital investment of about $4.5 billion (2007 dollars) will eventually produce 40,000 bbls/d for more than 50 years. The CTL plant will require a longer engineering design and construction period than the mine. Alter NRG plans to start up mining operations by the fall of 2013, to pre-build coal supply for startup of the CTL plant in early 2014.