When industries resist technology change very little comment is heard.
In the energy resources industry new technology boosts efficiency of converting resources into energy. This reduces demand for resources and lowers the cost of energy. It also reduces revenue of the energy resource industry.
The price of natural gas relies both on limiting supply and maintaining demand.
AGL has revealed that it is expanding production of coal seam gas in New South Wales even though it has NOT evaluated new technology able to rapidly and cheaply increase the supply of natural gas. This new method of producing natural gas would lift supply rapidly and suppress the sharp price rises AGL wishes to obtain from NSW consumers.
On 28 April AGL was asked via its community engagement web site about new technology developed since 2008 and that is being used in China to make natural gas from cheap coal. (See Question 1 below)
Two days later AGL gave AN ANSWER, but it was not an answer to the question it was asked. . (See AGL Answer to Question 1 below)
Two follow-up requests to AGL to give an answer to the question actually asked were handled by AGL as follows:
- The first follow-up request with information of which AGL was evidently unaware was ignored. In addition AGL removed this follow-up request from its web site.... (See Question 2 below)
- The second follow-up request for an answer taking into account the further information was eventually answered.. (See Question 3 below) AGL's answer is a bald assertion that "coal seam gas production is the best available source to meet the needs of the NSW market".. (See AGL Answer to Question 3 below)
It is clear from the answer AGL gave on 30 April 2014 that it is unaware of the superior technology China has adopted to make natural gas cheaply from coal.. (See AGL Answer to Question 1 below)
AGL is proceeding its push to expand coal seam gas throughout New South Wales without due diligence. This approach is unfortunate:
- The environmental damage created by coal seam gas is avoidable.
- The financial return to AGL investors will be diminished by using a technology that is no longer the best available for obtaining a supply of natural gas.
- The New South Wales economy will be damaged from the waste of existing coal transport infrastructure, investment in coal mining and loss of jobs. These resources and jobs exist now and can be used to make natural gas.
AGL is not the only Gas Giant ignoring new technology
.@abissicus It looks like @SantosLtd wants to raise book value, not use new tech: http://t.co/GQB90rgIoZ @greensjeremy @kangabella @guardian
— Askgerbil Now (@Askgerbil) May 15, 2014
Coal in decline. Centennial Coal announces job cuts across NSW #coal mines http://t.co/J5EzQqJjOT via @ABCNews #csg
— Askgerbil Now (@Askgerbil) May 2, 2014
Coal in decline. Xstrata cuts jobs at Hunter Valley coal mine http://t.co/w0SsDxMlPR via @ABCNews #csg
— Askgerbil Now (@Askgerbil) May 2, 2014
Australia's economic challenge. Capital productivity - output per dollar spent on capital expenditure - http://t.co/DtRIdlb6lD #auspol #CoA
— Askgerbil Now (@Askgerbil) May 2, 2014
Question 1
From: Your Say AGL
Date: 28 April 2014 15:41
Subject: Your question on Your Say AGL website
To: Askgerbil
Hi there,
Thanks for taking the time to visit Your Say AGL and asking us a question.
You asked:
'China is now using GreatPoint Energy's hydromethanation process to make natural gas from cheap coal. With coal prices low and falling, for how long can AGL's coal seam gas remain competitive? Has AGL conducted an evaluation of this new technology?'We will get back to you as soon as possible with a response.
Regards
AGL
AGL Answer to Question 1
From: Your Say AGL
Date: 30 April 2014 11:21
Subject: Response to your question on Your Say AGL website
To: Askgerbil
Hi there,
Thanks for taking the time to visit Your Say AGL and asking us a question.
You asked:
'China is now using GreatPoint Energy's hydromethanation process to make natural gas from cheap coal. With coal prices low and falling, for how long can AGL's coal seam gas remain competitive? Has AGL conducted an evaluation of this new technology?'
An updated response has now been posted on the site.
Our response:
'Hi Askgerbil, thanks for your question.Please let us know if you have any more questions or if anything needs to be clarified.
Coal seam gas is the best available source to meet the needs of the NSW market, in terms of both production capability and minimising environmental impacts.
The concept of hydromethanation has been in the public domain for decades, however, compared to the process of producing natural gas from coal seams, it has a much larger environmental footprint.
There is also some uncertainty around the technology as the industry is still in the early stages of development.'
Regards
AGL
Question 2
From: Your Say AGL
Date: 30 April 2014 20:07
Subject: Your question on Your Say AGL website
To: Askgerbil
Hi there,
Thanks for taking the time to visit Your Say AGL and asking us a question.
You asked:
'Thank you for AGL's view on GreatPoint Energy's technology for making natural gas from coal.We will get back to you as soon as possible with a response.
However, the AGL answer (below) is about a "concept in the public domain for decades", and does not answer my question that begins "China is now using GreatPoint Energy's hydromethanation process [patented in the last 5 years] ... "
### AGL's Answer ###
a. "The concept of hydromethanation has been in the public domain for decades"
b. "Compared to the process of producing natural gas from coal seams, it has a much larger environmental footprint."
c. "There is also some uncertainty around the technology as the industry is still in the early stages of development."
###
Please consider an answer to my question, taking into account:
a. GreatPoint Energy's technology is the subject of a collection of patents dating from 2008. It has not been in the public domain for decades.
(Some examples:
http://www.freepatentsonline.com/8192716.html
http://www.freepatentsonline.com/y2012/0305848.html
http://www.freepatentsonline.com/y2013/0042824.html
http://www.freepatentsonline.com/y2010/0121125.html
http://www.freepatentsonline.com/y2009/0260287.html
)
b. GreatPoint Energy's technology does not have a larger environmental footprint than the process of producing natural gas from coal seams.
See GreatPoint Energy's 2011 video at http://vimeo.com/18745900 | "Nothing goes up the stack into the atmosphere".
(Note that a GreatPoint Energy coal gasification plant built at an existing coal-fired power station would need NO additional infrastructure for coal-mining and transport - having less environmental footprint and capital outlay when compared to a large numbers of coal seam gas wells and above ground pipelines.)
c. GreatPoint Energy's technology is not surrounded by uncertainty and is in commercial use in China.'
Regards
AGL
Question 3
From: Your Say AGL
Date: 1 May 2014 09:19
Subject: Your question on Your Say AGL website
To: Askgerbil
Hi there,
Thanks for taking the time to visit Your Say AGL and asking us a question.
You asked:
'Can AGL add to its answer to my question on GreatPoint Energy's natural gas from coal technology? AGL's first answer only considers an older hydromethanation process and not the specific process developed since 2008 by GreatPoint Energy now being used in China.'We will get back to you as soon as possible with a response.
Regards
AGL
AGL Answer to Question 3
From: Your Say AGL
Date: 2 May 2014 11:04
Subject: Response to your question on Your Say AGL website
To: Askgerbil
Hi there,
Thanks for taking the time to visit Your Say AGL and asking us a question.
You asked:
'Can AGL add to its answer to my question on GreatPoint Energy's natural gas from coal technology? AGL's first answer only considers an older hydromethanation process and not the specific process developed since 2008 by GreatPoint Energy now being used in China.'
Our response has now been posted on the site.
Our response:
'Hydromethanation is still in the early stages of development. GreatPoint Energy reports that laboratory and pilot plant tests have shown the process can work for a range of feedstock, which is the driver behind the company’s joint venture to construct a full scale facility in China.Please let us know if you have any more questions or if anything needs to be clarified.
With NSW facing a shortage of gas supply from 2016, coal seam gas production is the best available source to meet the needs of the NSW market.'
Regards
Neil - YourSayAGL
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