Markets

Demand for energy is expected to continue to grow in the coming decades and it is recognised that the bulk of this energy growth will come from increased use of coal, oil and natural gas. At the same time concerns about climate change are leading to calls for significant reductions in the emissions of CO₂.

The latest International Energy Agency (IEA) projections indicate world energy usage to be nearly 45% more in 2030 compared to 2007. Most of the growth in demand is expected to come from increased coal use in China.

World Growth in Energy Demand
(million tonnes of oil equivalent per annum) 2007 to 2030

Source: Source: IEA World Energy Outlook 2008

The use of natural gas is expected to increase in line with this, with expected natural gas use in 2030 at approximately 50% more than in 2007. However the growth of gas usage will be geographically more dispersed, with most growth occurring in OECD countries and the Middle East.

At the same time there is increasing concern about the environmental impact of fossil fuel consumption due to the resultant release of CO₂ into the atmosphere. The UN's Intergovernmental Panel on Climate Change warned in 2007 that global Greenhouse Gas emissions need to peak over the next 10–15 years and drop dramatically by at least 50% against 2000 levels by 2050 in order to stabilise global mean temperature increases at around 2–2.4°C.

Alternative supplies of energy such as biomass, wind, solar, geothermal and small-scale hydro currently supply only 1% of global energy demand. Although they are likely to grow at rates an order of magnitude higher than fossil fuels, they are still not expected to supply more than 10% of the world's energy needs by 2025.

The world will continue to rely upon and exploit the remaining fossil fuels. Natural gas has been identified as the cleanest fossil fuel, emitting approximately 25% less CO₂ than oil, and almost 50% less than coal (on an energy equivalent basis at the point of use), and is seen as a key transition fuel to a low carbon economy, supporting the growth projections given above.

However, a significant proportion of the yet to be developed gas fields are known to have a high CO₂ content, including many areas in Australia and South East Asia. This CO₂ must be removed as part of the process of conditioning the gas to sales quality specifications prior to use e.g. power plant. Traditionally this CO₂ has been removed through the use of amines or membranes and vented to the atmosphere.

Current Markets

Cool Energy's CryoCell^® technology provides a new way to develop these gas fields, conditioning the gas to pipeline sales quality and capturing the CO₂ as a pressurised liquid suitable for transport and storage. The CryoCell^® technology provides a way to develop both new high CO₂ gas fields and existing fields that have been overlooked due to their high CO₂ content and, when combined with underground storage in geological formation, can do so while preserving the environment.

Future Markets

Further development of Cool Energy's CryoCell^® technology is expected to provide a way to develop gas fields, conditioning the gas to LNG sales quality whilst capturing the CO₂ as a pressurised liquid, enabling the development of high CO₂ gas fields in remote locations.

Cool Energy's CryoCell^® technology has truly global potential. The figure below indicates the World Proved Gas Reserves at end of 2006 (some 6300+ Trillion cubic feet of gas). Current projection indicate that this could represent only 50% of the total remaining World Gas resources, and up to 40% of these fields have (or will have) a high CO₂ content.

World Proved Gas Reserves
at end of 2006

Source: BP Statistical Review of World Energy 2007