28 June 2011

Social Licence and Sustainable Development:

QER’s Perspective

QER’s vision: Help secure Australia’s energy future

Our mission is to build and operate a safe, economically viable and sustainable

shale to liquid fuels industry in Queensland.

July 2009

Sustainable Development

•  Reduce •  Remove processes

•  Reliable plant

•  Renewables & energy reduction

•  Recycle •  Fuel gas

•  Reuse •  Cogeneration

•  Waste streams

•  Byproducts

•  Restore •  Rehabilitation

•  Plantations

Australia’s growing oil demand-supply gap

Conventional oil supply

MM

bbl

Imports in 2030 = 335 MMbbls

Business as Usual

Assumed 23% Efficiency Gains

Source: EnergyQuest 2009

Unconventional fuels

$12.6b* $30b*

$92b*

$128b*

0

20

40

60

80

100

120

140

2007 2015 2030 2030

A$Bn

Federal Government Projection

Australia’s fuel trade deficit

Low Price Scenario

Source: ACIL Tasman 2009 * Excludes LNG exports

High Price Scenario

Sustainable Development

Positioning STL

Economic benefits to QLD of a STL industry

4000 jobs regional Qld

2000 long term construction jobs

$800mpa taxes & royalties

$12.4B pa trade deficit reduction

Economic case for an Australian STL fuels industry

73 million barrels of oil annually

Australian refinery feedstock

$33bn to Australia’s GNP (2030)

Technology for 3T bbls of oil

Source: ACIL Tasman 2009

Supporting the community

Social licence: engaging our communities

Social licence - understanding our community’s requirements and valuation

•  What is the maximum value we can add?

•  What opportunities and prospects are our communities looking for?

•  Are there basic requirements missing now?

•  What capability could the community fulfill in the future?

•  Where should the work be done?

•  What other linkages can we introduce?

NSFTrialAreaANorth

NSF/GATrialAreaASouth

Future Strip Grazing Trial

Future ERE Recreation Trial

Existing Plantation – Future Optimisation Trial

Gibbs Property, Calliope

Environment: Technology to reduce emissions

• Thermal oxidizers • Lower temperatures • Lump processing • Lower gas and liquid volumes • Sealed processes and tanks • Iso-kinetic sampling • Process and emissions measurement

QER’s planned project development stages

2011 Technology demonstration plant - QLD

2014-15 Commercial Stage I plant

~ 2017 - 2019 Commercial Stage II at 20,000 bbls per day

2007 Colorado pilot plant trials

•  Develop product market acceptability

•  Maximize technical and process

development

•  Build operational expertise

Demonstration plant objectives.....

•  Demonstrate safe and environmentally sound performance

to community and government

  $100m capital (70% regional QLD)

  150 construction/50 permanent

The fuels QER will produce in Queensland

•  Synthetic crude oil for Australia’s refineries •  High cetane •  High energy density

•  Ultra-low sulphur diesel

•  High quality jet fuel

Wide Cut

Naphtha

QER

Low Sulphur

Diesel

USA

No. 2

Diesel

“Australia could find itself with a clean shale-oil industry employing 6000 people and adding $30 billion to the economy over the next 20 years.

It has the potential to sit alongside clean coal, geothermal, coal seam gas, biofuels, solar and wind in a realistic future global energy mix.”

Shale to liquids can be part of a positive future

Hon Peter Beattie Former Queensland Trade Commissioner The Australian newspaper 14 August 2010

Social Licence and Sustainable Development:

QER’s Perspective

Questions and Points of View?