Southern Pacific Petroleum NL and Central Pacific Minerals NL (SPP/CPM) reported that the Stuart Stage 1 plant resumed operations in the latter part of November 2000, following completion of extensive facility and operational changes to improve emissions performance.
As of November 1, about 20,000 barrels of finished products (naphtha and medium shale oil) were in tankage awaiting sale in the first quarter of 2001 once inventory levels are sufficient for cost-effective tanker shipments. Product testing by customers is under way.
In August the Stuart project operator, Suncor Energy Management Pty Ltd. (Suncor), completed the last in a series of Alberta Taciuk Processor (ATP) test runs over the May to August 2000 period designed to collect air emissions data under various operating conditions. This data has guided the emissions abatement solutions currently being advanced. The test runs have also served to significantly advance operating experience of all parts of the plant and mine.
The last ATP test run of the summer was completed on August 19 and focused on testing pilot-scale two-bed wet scrubbing on flue gas from the ATP and dryer and on dry scrubbing in the ATP using lime. Shale rates for the run were maintained at 160 tonnes per hour (64 percent capacity) over a 2-day period during which extensive odor measurement and monitoring was carried out.
During July and August two additional naphtha hydrotreater runs were successfully completed at rates up to design levels. Product quality specifications of less than 1 ppm for sulfur and nitrogen were also achieved.
Stuart hydrotreated naphtha, which represents about 50 percent of the planned production volume at Stuart, is low in sulfur and would provide an ideal feedstock in the manufacture of clean gasoline with low emissions characteristics. Compared to naphtha from Bass Strait, Stuart naphtha offers a 50- to 60-fold reduction in sulfur contamination. This provides significant potential benefits in improving Australian air quality and reducing domestic refiners’ costs to meet tougher fuel specifications.
With the start up of the naphtha hydrotreater, all parts of the plant have now been commissioned. Simultaneous operation of all sections of the plant is scheduled to occur after the plant turnaround.
From August to November the Stuart Stage 1 plant was in a turnaround to install new equipment to improve plant emissions performance and to carry out maintenance work. The work program included:
The companies expect that a marked improvement will be achieved in emissions and noise performance as a result of these changes. The turnaround will be followed by a commissioning and testing period for the new equipment including an assessment of its performance in reducing odor emissions. As a contingency, a number of other changes are being reviewed. If required, it is expected that these additional fixes can be implemented early in 2001.
The shale processor was restarted on November 29, 2000, and ran until December 4 at the target rate of 150 to 160 tons per hour. It was again restarted on December 12 and was running under stable conditions as of that date.
The companies expect a gradual ramp-up to production through 2001. Operations are expected to be characterized by a series of sustained production runs of several weeks in duration followed by short periods of shutdown for inspection, equipment fine-tuning and operational changes to support improved emissions performance and production ramp-up.
In the first half of 2001, it is planned that daily shale processing rates will be limited to about 50 to 60 percent of plant capacity while building experience with the new emissions equipment, with plant availability averaging about 40 to 50 percent. The companies expect this to be ramped up in the second half of the year.
As of November the outlook for total expenditures remained at $290 to $310 million. As of the end of September 2000, expenditures stood at $270 million.
Injunction Against GreenpeaceOn November 29, 2000, the Stuart joint venture was granted an injunction against Greenpeace in the Queensland Supreme Court. Under the injunction order, Greenpeace must cease encouraging its members or others to trespass onto the Stuart Oil Shale project site or to interfere with the business carried on there. Greenpeace protesters illegally entered the plant site on three occasions during the November 27-29 period, creating a safety risk to themselves and project employees. Greenpeace has publicly stated that they will comply with the order.
Emissions Monitoring and AssessmentRecent preliminary measurements have detected low levels of dioxins in plant air emissions and spent shale.
One of Australia’s leading toxicologists reviewed the air emissions measurements and concluded that potential human exposure levels from plant air emissions of dioxins are well below World Health Organization guidelines. The Department of Health in Queensland and the Environmental Protection Agency agreed with the conclusions and supported the recommencement of plant commissioning trials.
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