The planned project is for an industrial-scale coal-fired power station fitted with carbon capture and storage technology to reduce its greenhouse gas emissions. The power station would be capable of producing 500MW of low-carbon electricity or enough power for half a million homes.
According to BP, the plant would generate enough electricity to meet 15% of the demand of southwest western Australia, while each year capturing and permanently storing about four million tonnes of carbon dioxide.
The project would gasify locally-produced coal to produce hydrogen and CO2. The hydrogen would be used to fuel the power station and around 90% of the CO2 would be captured and stored permanently in a deep underground geological formation.
Lewis Gillies, chief executive of Hydrogen Energy, said: This has enormous potential to affect the way that coal will be used for power generation across the world. Clean coal technology such as this will be essential to reducing greenhouse gas emissions, both in Australia and globally.
BP said that, subject to the successful outcome of engineering and commercial studies, and providing government policy is in place to make the project commercially viable, a final investment decision to develop the project could be made in 2011, with the project coming into operation after a three-year construction period.
BP revealed that Kwinana is an ideal location for the project because of its proximity to the company’s refinery, Rio Tinto’s HIsmelt plant and other industrial operations which may benefit from the plant’s output. The company said that this provides synergies that will greatly assist the commercial viability of the project.