Stuart Oil Shale Project
Encyclopedia
The Stuart Oil Shale Project was an oil shale
development project in Australia near Gladstone, Queensland
. It was Australia's first major attempt since the 1950s to restart commercial use of oil shale. The project was originally developed by Australian companies Southern Pacific Petroleum NL
and Central Pacific Minerals NL (SPP/CPM).
to develop the Stuart oil shale deposit. Suncor was designated as the project operator. In April 2001, Suncor left the project and SPP/CPM became the sole shareholder of the project. In February 2002, due the restructuring of SPP/CPM, SPP became the holding company for the group's interests, including the Stuart Oil Shale Project. As SPP had granted fixed and floating charges in favour of Sandco Koala LLC in May 2003, the chargee appointed receivers of SPP on 2 December 2003. In February 2004, the Stuart Oil Shale Project was sold by receivers to the newly formed company Queensland Energy Resources
., which announced on 21 July 2004 that the plant would be closed for economic and environmental reasons. Greenpeace, which had protested the project, viewed the closure as a major victory.
On 14 August 2008, Queensland Energy Resources announced that it would replace the Alberta Taciuk Process (ATP)
of oil shale processing with Paraho II technology
and that it was dismantling the ATP-based plant.
The second stage with cost of A$600 million was planned to consist of a single commercial-size module four times larger than the first with total capacity of 19000 barrels (3,020.8 m³) of oil products (naphtha and medium shale oil
) daily. Originally it was planned to become operational in 2006. The third planned stage was construction of multiple commercial production units with capacity of up to 200,000 barrels of oil products per day. It was envisaged to come on stream during 2010–2013. The environmental impact assessment of stage 2 was suspended in December 2004. By April 2008, plant equipment at the site was being sold off.
claimed that greenhouse emissions from the production of shale oil was nearly four times higher than from the production of conventional oil. In response, SPP promised to reduce greenhouse emissions from production of shale oil to 5% below those of conventional oil by stage 3. Greenpeace also claimed that the Stuart Oil Shale Project was a significant source of highly toxic dioxins and would damage the Great Barrier Reef
World Heritage Area during stage 3. Public health concerns were also mentioned. Local residents claimed dioxins emitted from the plant affected their health and that the odour was unacceptable.
Oil shale
Oil shale, an organic-rich fine-grained sedimentary rock, contains significant amounts of kerogen from which liquid hydrocarbons called shale oil can be produced...
development project in Australia near Gladstone, Queensland
Gladstone, Queensland
- Education :Gladstone has several primary schools, three high schools, and one university campus, Central Queensland University. It is also home to CQIT Gladstone Campus.- Recreation :...
. It was Australia's first major attempt since the 1950s to restart commercial use of oil shale. The project was originally developed by Australian companies Southern Pacific Petroleum NL
Southern Pacific Petroleum NL
Laguna Resources NL is an Australian and mineral exploration and mining company. It explores and develops gold and silver projects in the Maricunga Gold Belt of Northern Chile. It was a developer of the Stuart Oil Shale Project.-History:...
and Central Pacific Minerals NL (SPP/CPM).
History
In 1997 SPP/CPM signed a joint venture agreement with the Canadian company Suncor EnergySuncor Energy
Suncor Energy Inc. is a Canadian integrated energy company based in Calgary, Alberta. It specializes in production of synthetic crude from oil sands...
to develop the Stuart oil shale deposit. Suncor was designated as the project operator. In April 2001, Suncor left the project and SPP/CPM became the sole shareholder of the project. In February 2002, due the restructuring of SPP/CPM, SPP became the holding company for the group's interests, including the Stuart Oil Shale Project. As SPP had granted fixed and floating charges in favour of Sandco Koala LLC in May 2003, the chargee appointed receivers of SPP on 2 December 2003. In February 2004, the Stuart Oil Shale Project was sold by receivers to the newly formed company Queensland Energy Resources
Queensland Energy Resources
Queensland Energy Resources Limited is an Australian oil shale mining and shale oil extraction company with the headquarter in Brisbane. It is the developer of the Stuart and McFarlane oil shale projects.-History:...
., which announced on 21 July 2004 that the plant would be closed for economic and environmental reasons. Greenpeace, which had protested the project, viewed the closure as a major victory.
On 14 August 2008, Queensland Energy Resources announced that it would replace the Alberta Taciuk Process (ATP)
Alberta Taciuk Process
The Alberta Taciuk process is an above-ground dry thermal retorting technology for extracting oil from oil sands, oil shale and other organics-bearing materials, including oil contaminated soils, sludges and wastes...
of oil shale processing with Paraho II technology
Paraho process
The Paraho process is an above ground retorting technology for shale oil extraction. The name "Paraho" is delivered from the words "para homem", which means in Portuguese "for mankind".-History:...
and that it was dismantling the ATP-based plant.
Project stages
The first stage of the project, which cost A$250–360 million, consisted of an oil-shale mine and pilot retorting plant, which was constructed in 1997-1999. The plant, which was in operation from 1999 to 2004, used the ATP retorting technology being the first application of the ATP technology in the world on oil shale. The plant was designed to process 6,000 tonnes of oil shale per day with oil output of 4500 barrels (715.4 m³). From 2000 to 2004 the pilot plant produced over 1.5 Moilbbl of shale oil. After the closure the facility was dismantled.The second stage with cost of A$600 million was planned to consist of a single commercial-size module four times larger than the first with total capacity of 19000 barrels (3,020.8 m³) of oil products (naphtha and medium shale oil
Shale oil
Shale oil, known also as kerogen oil or oil-shale oil, is an unconventional oil produced from oil shale by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock into synthetic oil and gas...
) daily. Originally it was planned to become operational in 2006. The third planned stage was construction of multiple commercial production units with capacity of up to 200,000 barrels of oil products per day. It was envisaged to come on stream during 2010–2013. The environmental impact assessment of stage 2 was suspended in December 2004. By April 2008, plant equipment at the site was being sold off.
Environmental issues
The project was heavily criticized by environmentalists. Over 20,000 people and 27 environment, tourism and fishing groups opposed the shale oil plant. GreenpeaceGreenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
claimed that greenhouse emissions from the production of shale oil was nearly four times higher than from the production of conventional oil. In response, SPP promised to reduce greenhouse emissions from production of shale oil to 5% below those of conventional oil by stage 3. Greenpeace also claimed that the Stuart Oil Shale Project was a significant source of highly toxic dioxins and would damage the Great Barrier Reef
Great Barrier Reef
The Great Barrier Reef is the world'slargest reef system composed of over 2,900 individual reefs and 900 islands stretching for over 2,600 kilometres over an area of approximately...
World Heritage Area during stage 3. Public health concerns were also mentioned. Local residents claimed dioxins emitted from the plant affected their health and that the odour was unacceptable.