After coal, Sargas says carbon-capture plant can be powered by gas

Norwegian carbon-capture technology promoters Sargas have declared that using gas for a CCT plant to capture carbon emissions, "is a veritable possibility."

The announcement by Sargas chief executive Henrik Fleischer comes in the wake of a statement from the finance minister that a pre-feasibility study on the use of coal for the production of CO2 emissions that will be captured to be exported and sold, should be followed by a full feasibility study by Sargas.

"I am pleased to hear from the media that the government will ask for a feasibility study on the power station utility proposal," Fleischer said.

The CEO also claimed government "had conceded" that the Sargas proposal would translate into cheaper utility tariffs. "It has taken us over three years to concretise an understanding between the two parties. But I should add that our technology is being set up in various countries especially the US. We have not given up on Malta in spite of our massive investment programme in other countries."

Fleischer added that Sargas would not only be willing to address the issues raised in the public statement, more specifically but more emphatically it would like to underline the following.

"The Sargas project is not intrinsically linked to coal and the use of gas is a veritable possibility," he said.

"Sargas technology will lead to near zero emissions, there is no question about this. This means that the Malta emissions will be substantially less than from today's plants. Carbon capture technology would put Malta at the forefront in environmental conservation and energy solutions."

Fleischer also insisted that the sale of capture carbon emissions was not linked with any one country.

Sargas had proposed a 30-year power purchasing supply agreement for Enemalta, to which government replied with a request for a full feasibility study of the proposal.

Sargas's proposal consists of a power plant that will be accompanied by a coal-fired steam plant on a barge dry docked at Marsaxlokk Bay, complete with emissions abatement and equipped to capture carbon dioxide emissions for eventual storage.

The plant would be fuelled with a mix of coals and bio-fuels, and the CO2 emitted carried out by tankers to be stored in depleted oil wells outside Malta.

Sargas SA have proposed to export the captured carbon dioxide to be disposed of in depleted offshore oil wells for enhanced oil recovery. Initially, this was included in the business proposal as a zero revenue item. Eventually it was included at €8 per tonne. According to KPMG, there is some public opposition with respect to underground storage of CO2 in certain European countries.

KPMG also said it could not verify Sargas's claims that it could sell the by-product ash to concrete producers at €40-€60 per tonne.

KPMG outlined various issues on the CCS option: carbon capture storage depends on adequate carbon prices and guarantees that it will be viable in the long term. Since Sargas proposed a 30-year agreement with Enemalta, the price of coal and the availability of biopaste would have a significant impact on the viability of the project as a whole.

Another consideration is the effect of the coal-fired steam plant on the Marsaxlokk bay and fishing village, as well as other polluting side-effects.