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The Monash Energy Project is the first to be nominated for development under a Clean Coal Energy Alliance formed between Anglo American and Shell in May 2006.
Under the Alliance the two companies aim to maximise the benefits from the emerging field of clean coal energy by taking selective equity positions in coal conversion projects. These projects will utilise the coal reserves of Anglo American and combine its mining capabilities with Shell’s technologies. The objective is to extract, gasify and then convert clean coal into reusable energy sources, chemicals, hydrogen, power, liquid hydrocarbons and other uses.
Anglo American and Shell share common corporate values and a commitment to sustainable development, which will be applied to the Alliance and future projects. Burning the synthesis gas generated by the gasification of coal emits significantly lower quantities of greenhouse gases and pollutants than traditional coal burning and is the cleanest way to harness the energy potential of coal - the world’s dominant fuel source.
Project History
The Monash Energy Project has its roots in 2002. The State Government of Victoria offered access to Victoria’s brown coal resources for initiatives to value-add it as a source of sustainable, clean energy. Monash Energy was granted an Exploration Licence over the Flynn Coal Field.
Anglo American became sole owner of the project in 2004, at which time the name Monash Energy was chosen in honour of General Sir John Monash, the first Chairman of the State Electricity Commission who championed brown coal development in the Latrobe Valley.
Pursuant to the Clean Coal Energy Alliance, Anglo American signed a Joint Development Agreement (JDA) with Shell Gas and Power in September 2006, to further advance the project. Shell brought to the project technical expertise and experience in utilising technology to maximise the potential of energy sources. In recognition of the progress of the project to date, the Victorian Government converted part of Monash Energy’s Exploration Licence to a Mining Licence.
The JDA covers a number of project development phases. In the initial concept phase Monash Energy is utilising technical advisers from Anglo American and Shell to conduct a study of the commercial and technical aspects of using processes and technology for carbon capture and storage. If successfully concluded, the study would form the basis for later phases of the project.
In the JDA between Shell and Anglo American, Anglo American’s subsidiary, Anglo Coal, will retain responsibility for the Mining and Exploration Licences, and ultimately for mine development. Anglo Coal will be responsible for providing coal to the Coal-to-Liquids plant, which is being jointly developed. This reflects the particular expertise Anglo American – through its division Anglo Coal – has in mine development, and Shell’s preference to concentrate on the process and product aspects of the Monash Energy Project.
