A briefing paper contains a mind-boggling fact:
Coal in Australia is worth about $1.50 per gigajoule.
Natural gas is worth about $9.00 per gigajoule.
Modelling assumptions workshop ACIL Allen Consulting
Presenters: Paul Hyslop / Owen Kelp / Guy Dundas
Date: 23 April 2014
- Why burn coal when it can be increased six-fold in value by converting it to natural gas?
- Why drill coal seam gas wells all over the place when you can make natural gas from coal worth about one-sixth of the value of natural gas?
More natural gas with no coal seam gas. http://t.co/7Sk4mn7kSm #coal #csg
— Askgerbil Now (@Askgerbil) August 17, 2014
The estimate of $2 per gigajoule of thermal coal in NSW (about 25 gigajoules per tonne) requires a price of just $50 per tonne. The current price of NSW thermal coal however is closer to $80 per tonne or $3.20 per gigajoule.
Gas and coal prices
Natural gas and coal prices used in 2013 emissions projections work
ACIL Allen Consulting, Electricity Sector Emissions:
Modelling of the Australian Electricity Generation Sector, September 2013