Referral of proposed action

Project title: Felton Clean Coal Demonstration Project 

1 Summary of proposed action

NOTE: You must also attach a map/plan(s) showing the location and approximate boundaries of the area in which the
project is to occur. Maps in A4 size are preferred. You must also attach a map(s)/plan(s) showing the location and
boundaries of the project area in respect to any features identified in 3.1 & 3.2, as well as the extent of any freehold,
leasehold or other tenure identified in 3.3(j).

1.1 Short description

Ambre Energy (Felton) Pty Ltd (ABN 34 116 129 607) (Ambre Energy) is proposing to build own and operate a world-
class clean coal gasification plant to produce syngas for the production of dimethyl ether from coal, and co-generating
electricity. The plant will be designed to be ready for CO2 capture and storage.

1.2 Latitude and longitude Latitude Longitude

Latitude and longitude details location point degrees minutes seconds degrees minutes seconds
are used to accurately map the
boundary of the proposed NW -27 46 58.98 151 42 28.13
action. If these coordinates are NE -27 46 54.23 151 44 44.76
inaccurate or insufficient it may
delay the processing of your SW -27 48 54.15 151 42 45.10
referral. SE -27 48 54.83 151 44 37.76

001 Referral of proposed action vJUL08 page 1 of 22

1.3 Locality
The project is located near the township of Felton, approximately 30km south-west of Toowoomba and 10km south-
east of Pittsworth.

1.4 Size of the development 810ha.

footprint or work area
(hectares)
1.5 Street address of the site Pittsworth-Felton Road

1.6 Lot description

Lot 91 RP21324 Lot 1 AG2394
Lot 2 RP 54975 Lot 94 RP21324
Lot 1 RP 197372 Lot 1 RP101075

1.7 Local Government Area and Council contact (if known)

Toowoomba Regional Council

1.8 Timeframe
The estimated start date for construction is mid 2010.

1.9 Alternatives x No
Does the proposed action
include alternative timeframes, Yes, you must also complete section 2.2
locations or activities?
1.10 State assessment No
Is the action subject to a state
or territory environmental x Yes, you must also complete Section 2.4
impact assessment?

001 Referral of proposed action vJUL08 page 2 of 22

1.11 Component of larger action
Is the proposed action a
component of a larger action?
1.12 Related actions/proposals
Is the proposed action related to
other actions or proposals in the
region (if known)?
1.13 Australian Government
funding
Has the person proposing to
take the action received any
Australian Government grant
funding to undertake this
project?
001 Referral of proposed action vJUL08
No
x Yes, you must also complete Section 2.6
x No
Yes, provide details:
x No, not specifically for this project, however they have received a
Federal grant from the Australian Research Council grant to
undertake research on converting a diesel engine to DME and test it
under varying condition and loads.
Yes, provide details:
page 3 of 22
2 Detailed description of proposed action
NOTE: It is important that the description is complete and includes all components and activities associated with the action.
If certain related components are not intended to be included within the scope of the referral, this should be clearly
explained in section 2.6.

2.1 Description of proposed action

Ambre Energy is proposing to build own and operate a world-class clean coal gasification plant to produce syngas for the
production of dimethyl ether from coal, and co-generating electricity. The plant will be designed to be ready for CO2 capture
and storage. The Felton North coal deposit will provide the coal feedstock for the company’s Felton Clean Coal Project.
The initial demonstration stage of this project will be commercially viable as a stand alone unit, and involves the
construction and operation of a world-class clean coal gasification plant to produce syngas for the following purposes.
• Production of 227 million litres per year of DME; and
• Generation of 51MW of electricity, 10MW of which will be needed to power the plant.

Demonstration Stage
The demonstration stage (2011) of the Project will involve the construction of a coal gasification, DME production and
power generation plant to demonstrate –

• the cleaner use of coal through gasification of about 2000 tonnes per day (tpd) (up to 800,000 tonnes/year) of high
ash coal to produce 1,980 tpd of synthesis gas (syngas);

• the use of the syngas to produce 447 tpd (150,000 tonnes/year or 227 million litres/year) of DME for compression
ignition engines, fuel cells and numerous other applications, using a novel, low-cost production technology;

• the potential use of syngas and by-products such as nitrogen for the production of other useful chemicals and
fertilisers;

• the use of a hydrogen-rich (60% H2 by volume) tail gas for the production of 51 MW of cleaner power; and

• the pre-combustion capture of CO2 for potential enhanced oil recovery from depleted oil fields and
geosequestration.

Steam for Process Use
Coal Feed
HRSG

H2 S removal
CO2

Shift 
Oxygen Reactor
Tail Gas to Power 
Generation

Steam
Fluidised Bed 
Gasifier
CO2
DME removal
Reactor

Product Separation
DME Product

Figure 1, Demonstration Plant Flow Diagram

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The demonstration stage will also include the development of an 800,000 tonnes per year open cut coal mine to provide
coal for the plant.

Figure 2, Demonstration Stage Open Cut Mine and Infrastructure layout plan

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Stage 2 (Mine)

Following the successful commissioning of the demonstration stage of the Project, a Stage 2 expansion (2013) will involve:

• the expansion of the coal mine to produce an additional 3 million tonnes per year (Mtpy) of coal, thereby
increasing mine capacity to 3.8 Mtpy.

If Stage 1 and 2 are successful Ambre Energy will consider a Stage 3 expansion; the timeframe for this is 15 years away
and an additional application will be made at this time.

Figure 3, Stage 2 mine expansion layout Plan 

2.2 Alternative locations, time frames or activities that form part of the referred action
If you have identified that the proposed action includes alternative timeframes, locations or activities (in section 1.9) you
must complete this section. Describe any alternatives related to the physical location of the action, time-frames within
which the action is to be taken and alternative methods or activities for undertaking the action.

There were a number of alternate locations investigated for the project. These included locations in the immediate area,
locations within the region and also alternate locations within Queensland. Most of these locations were unsuitable due to
the lack of coal supply. The current site was chosen due to a number of reasons including:
- the suitability of coal to produce DME found in the area;
- the ability to develop high ash coal deposits;
- the suitability of the unique high volatile coal to produce DME found in the area;
- access to a large body of local skilled workers;
- access to a large body of local contractors; and
- close proximity to important infrastructure.

There were a number of alternate timings for the project considered. It has been decided that the demonstration project will
be built first with the intention of Stage 2 occurring within 3 years. There is also the possibility of an additional stage to be
added on in the future should the demonstration project and Stage one be determine feasible.

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2.3 Context, planning framework and state/local government requirements
The project is located within the Toowoomba Regional Council’s local government area (formerly Pittsworth Shire Council
prior to the Queensland local government amalgamations).

The project will also require a number of approvals including a mining lease, Environmental Authority for ERAs, approval
under the Vegetation Management Act 1999, Water Act 2000 and potentially under the Nature Conservation Act 1992,
Fisheries Act 1994 and other local and state legislation once details of the project have been finalised.

2.4 Environmental impact assessments under Commonwealth, state or territory legislation

An IAS was submitted to the Coordinator-General in December 2007. It was determined that the project would not be
assessed under the State Development and Public Works Organisation Act 1971. The proponent has decided to undertake
a voluntary EIS under Queensland’s Environmental Protection Act 1994. The EIS will ensure that all environmental
investigations are undertaken for the site and that all environmental issues have been considered. The EIS will also identify
other approvals which may be required for the project.

Consultation with the local community has already been undertaken and will continue to be undertaken during the EIS
stage of the project. A detailed consultation management plan is currently being prepared by the proponent which will
outline the different types of consultation that has been undertaken and that will be undertaken for the project. This may
include public meetings, open days, information newsletters etc.

2.5 Consultation with Indigenous stakeholders

The CHMP was finalised and signed on 20th August 2008 by Margaret McLeod, Sandra Bauwens and Adrian Beattie as
endorsed Aboriginal Parties for the Western Wakka Wakka people and Ambre Energy. Ambre Energy is undertaking
exploration activities in the hope of establishing an open cut mines operation to provide a suitable fuel stock for the
production of DME and power. Ambre Energy wishes to undertake Project Activities in the Plan Area.

Margaret McLeod, Sandra Bauwens and Adrian Beattie are the endorsed Aboriginal Parties in respect of the Plan Area
pursuant to section 34(1)(b)(i) of the Cultural Heritage Act. Project Activities may impact Cultural Heritage in the Plan Area.
The parties have consulted about the Project and the management of its possible impact on Cultural Heritage pursuant to
sections 104 and 105 of the Cultural Heritage Act.

The parties have agreed to enter into this Agreement for the purposes of identifying, assessing, protecting, managing and
minimizing the impact on Cultural Heritage in the Plan Area and to this end they are committed to work together in close
cooperation in a relationship of respect through open and constructive consultation. It is the intention of the parties that this
Agreement will be an Approved CHMP under the Cultural Heritage Act

2.6 A staged development or component of a larger project

If you have identified that the proposed action is a component of a larger action (in section 1.11) you must complete this
section. Provide information about the larger action and details of any interdependency between the stages/components
and the larger action. You may also provide justification as to why you believe it is reasonable for the referred action to be
considered separately from the larger proposal (eg. the referred action is ‘stand-alone’ and viable in its own right, there are
separate responsibilities for component actions or approvals have been split in a similar way at the state or local
government levels).

The Felton Clean Coal Demonstration project is a commercially viable, stand alone entity capable of supplying significant
volume of DME to local and national markets for more than 30 years. Ambre Energy (Felton) Pty Ltd has identified the
potential for future possible expansion of the project to keep up with the anticipated growth of DME as an alternative
transport fuel within Australia. These expansions as outlined below are not vital to the profitability or success of the
operation.

Stage 2 (Processing Facility)

Following the successful commissioning of the demonstration stage and stage 2 (mine expansion) of the Project, a Stage 2
expansion of the processing facility will involve:

¾ the expansion of the processing plant to 2,500 tonnes per day (800,000 tonnes per year) of DME and 200 MW of
power.

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 ¾ establishment of an IGCC power plant and associated high voltage powerlines
¾ establishment of product distribution pipelines

Stage 3

Stage 3 of the project will involve:

¾ a further expansion of the coal mine to produce an additional 3 Mtpy of coal, thereby increasing mine capacity to
6.8 Mtpy; and

¾ a further expansion of the processing plant to 4,500 tonnes per day (1.5 Mtpy) of DME and 350 MW of power.

Stage 4

Stage 4 of the project will involve:

¾ a further expansion of the coal mine to produce an additional 6 Mtpy of coal, thereby increasing mine capacity to a
total of 12.8 Mtpy; and

¾ a further expansion of the processing plant to 6,500 tonnes per day (2.8 Mtpy) of DME and 650 MW of power.

3 Description of environment & likely impacts

3.1 Matters of national environmental significance
Note that even if your action will not be taken in a World Heritage area, Ramsar wetland, Commonwealth
marine area, or on Commonwealth land, it could still impact upon these areas (for example, through
downstream impacts). Consideration of likely impacts should include both direct and indirect impacts.

3.1 (a) World Heritage Properties

There are no World Heritage Properties located near the proposed site.

3.1 (b) National Heritage Places

There are no National heritage Places near the proposed site.

3.1 (c) Wetlands of International Importance (declared Ramsar wetlands)

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Description
Narran Lake Nature Reserve

Nature and extent of likely impact

The proposed development is located within the same catchment as the Narran Lake Nature Reserve. Narran Lake is located
over 400km south west from the proposed development site. The Development site has the potential to impact Hodgson
Creek which flows into the Condamine River, which forms part of the Condamine-Balonne Basin. Narran River is part of the
Condamine-Balonne Basin and it terminates in the Narran Lake Nature Reserve located in NSW. The potential to impact this
wetland during construction is minimal, especially with adequate erosion and sediment control devices in place.

During operation the potential contaminants are all bunded according to Australian Standards. Fuels and chemicals will all be
bunded and will be located away from Hodgson Creek to ensure that the creek will not be contaminated during the operational
phase of the project.

Figure 4, Location of Narran Lake to the Felton Clean Coal Demonstration Project

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3.1 (d) Listed threatened species and ecological communities

Description

Threatened ecological communities

The EBPC Act Protected Matters Report listed the following ecological communities and threatened species.

• Bluegrass (Dichanthium spp) dominant grasslands of the Brigalow Belt Bioregions (north and south)
• White Box-Yellow Box-Blakely’s Red Gum grassy Woodland and Derived Native Grassland

Figure 5, Location of threatened Blue Grass community (community is shaded pink)

Threatened Species
Species EPBC Status Response
Birds

Red Goshawk (Erythrotriorchis V Tropical open woodland, edges of rainforest and dense riverine
radiatus) vegetation. Nests in trees taller than 20 m within 1 km of a
permanent watercourse or wetland. Forages in open forests and
gallery forests.
Squatter Pidgeon (Geophaps scripta V Open grasslands often in eucalypt woodland. Preference for
scripta areas on sandy soil with low gravel ridges and nearby water.
Swift Parrot (Lathamus discolour) E Breeds in Tasmania and over-winters in forests and woodlands
on the Australian mainland, congregating where eucalypts are
flowering profusely. In coastal SEQ, red ironbark/ forest red gum
forests and yellow box forest.
Australia Painted Snipe (Rostratula V Shallow muddy freshwater swamps and marshes.
australis)
Regent Honeyeater (Xanthomyza E Eucalypt woodland and open forest on the slopes of the Great
phrygia) Dividing Range.
Mammals

Large-eared Pied Bat, large Pied bat
(Chalinolobus dwyeri)
Spotted-tail Quoll (Dasyurus maculatus
maculatus)
Eastern Long-eared Bat (Nyctophilus
V Dry forests and woodlands, moist eucalypt forests, caves and
mines.
E Rainforests and dense woodlands, dens in hollow logs, trees,
caves and rock crevices. Uncommon over most of its range,
restricted to large forested areas.
V River Red Gum forest, semi-arid woodlands and savannas.

001 Referral of proposed action vJUL08 page 10 of 22

 timoriensis)
Long-Nosed Potoroo (Potorous
tridactylus tridactylus)
Grey-headed Flying Fox (Pteropus
poliocephalus)
Fish
Murray Cod (Maccullochella peelii
peelii)
Reptiles
Five-clawed worm-skink (Anomalopus
mackayi)
Grassland earless dragon
(Tympanocryptis pinguicolla)
Plants
Finger Panic Grass (Digitaria porrecta)
Tricolour Diuris (Diuris sheaffiana)
Homopholis belsonii
Hawkweed (Picris evae)
Native Thistle (Stemmacantha
australis)
Toadflax (Thesium australe)
Queensland EPA Database searches also identified some EPBC Act listed species that were not present on the EPBC Act
protected matters report. They are listed in the table below.
Species
Glossy Black-Cockatoo
(Calyptorhynchus lathami
halmaturinus)
Black-breasted Button-quail (Turnix
melanogaster)
Brush-tailed rock wallaby (Petrogale
penicillata)
001 Referral of proposed action vJUL08
Roosts in tree hollows, fissures in branches and under sheets of
bark.
V Coastal wet heath, dry and wet forests with thick ground cover
V Roosting sites usually in dense forest adjacent to waterbodies.
Forages within 15 km of camp in flowering trees or rainforests,
eucalypts, paperbarks and banksias
V Freshwaters of the Murray-Darling River drainage in Qld, NSW,
Vic and SA, from smaller upland streams to large slow-flowing
rivers. Prefers deep holes with cover such as large rocks, fallen
trees, stumps and overhanging vegetation.
V Open grasslands on heavy cracking clay in the Darling Downs.
Usually in soil under dead grass. Often on relict roadside verges.
E Remnant roadside grassland and adjacent croplands. Occupies
intensively farmed, mixed croplands of cotton and sorghum.
E Native grassland, woodlands or open forest with a grassy
understorey, on richer soils.
V
V Found in brigalow forest and temperate semi-humid woodlands
on poor soils.
V All recent collections appear to come from modified habitats such
as weedy roadside vegetation. Its main habitat is open
Eucalyptus forest and Dichanthium grassland, roadsides and
cultivated areas (paddocks).
V
V Occurs in grassland or grassy woodland.
EPBC Status Response
E Coastal forest and open inland woodland. Feeds only on she-oak
seeds from species such as Black She-oak, Forest Oak or Belah.
V Semi-evergreen vine-thickets with a closed canopy and deep
litter layer, or lantana thickets adjacent to SEVT, in eastern Qld
and northern NSW.
V Rock piles and cliffs with ledges, caves and crevices in wet and
dry sclerophyll forests. Unlikely to be located onsite.
page 11 of 22
Nature and extent of likely impact

There is currently a flora and fauna investigation being undertaken to determine the extent / existence of the ecological
communities and the presence of the protected species. From mapping it has been determined that a small area of the
Bluegrass Community is located on the southern portion of the site and may be impacted by the proposal. It is unclear at this
stage if the White Box-Yellow Box-Blakely’s Red Gum grassy Woodland and Derived Native Grassland exists onsite

Majority of the project site is modified agricultural land. Vegetation along the creekline is minimal. Remnant vegetation on hills
will remain intact and revegetation will occur.

A number of the species listed above may utilise the project site or habitats near the project site. The impact to these species
is expected to be minimal, however the current flora and fauna investigation will determine the likelihood of these species
being onsite, the potential impact and management and mitigation measures to minimise impacts to these species.

3.1 (e) Listed migratory species

Description

Species Description
Terrestrial Species

White-bellied Sea-Eagle (Haliaeetus
leucogaster)
White Throated Needletail (Hirundapus
caudacutus)
Rainbow Bee-eater (Merops ornatus)
Black-faced Monarch (Monarcha
melanopsis)
Regent Honeyeater (Xanthomyza Phrygia)
Wetland Species
Coastal seas, islands, estuaries and inlets. Follows major rivers and wetlands far
inland. Huge nests of sticks, usually in tall trees.
Variety of habitats. Aerial forager. Breeds in northern hemisphere, nests in tree
hollows.
Open country, most vegetation types, sand dunes, banks.
Rainforests, mangroves and their fringes, wet eucalypt forests, damp gullies.
Eucalypt woodland and open forest on the slopes of the Great Dividing Range.

Great Egret, White Egret (Ardea alba)
Cattle Egret (Ardea ibis)
Latham’s Snipe, Japanese Snipe (Gallinago
hardwickii)
Painted Snipe (Rostratula benghalensis s.
lat.)
Forktailed Swift (Apus pacificus)
Floodwater, rivers, shallows of wetlands, intertidal mudflats.
Pasture, shallows of freshwater wetlands.
Breeds in Japan. Low rank vegetation around shallows of wetlands, reeds, sedges,
saltmarsh. Summer migrant.
Shallow muddy freshwater swamps and marshes.
Varied; airspace over habitat ranging from rainforest to semi-desert.

Nature and extent of likely impact

There is the potential for a number of these species to occur on or near the site. Many of these species are widespread are
likely to be found on or near the proposed site. The potential impact to these species will be determined during the fauna
investigation, however it is expected that this potential impact will be minimal. The remnant vegetation on hills will remain
intact, revegetation will occur onsite and surrounding vegetation will not be impacted therefore habitat will still be available for
these species.

3.1 (f) Commonwealth marine area

There are no Commonwealth marine areas located near the proposed site.

3.1 (g) Commonwealth land

The proposed project will not impact upon Commonwealth Land.

001 Referral of proposed action vJUL08 page 12 of 22

3.2 Nuclear actions, actions taken by the Commonwealth (or Commonwealth
agency), actions taken in a Commonwealth marine area, or actions taken on
Commonwealth land

3.2 (a) Is the proposed action a nuclear action? x No

Yes (provide details below)
If yes, nature & extent of likely impact on the whole environment

3.2 (b) Is the proposed action to be taken by the x No

Commonwealth or a Commonwealth
agency? Yes (provide details below)
If yes, nature & extent of likely impact on the whole environment

3.2 (c) Is the proposed action to be taken in a x No

Commonwealth marine area?
Yes (provide details below)
If yes, nature & extent of likely impact on the whole environment (in addition to 3.1(f))

3.2 (d) Is the proposed action to be taken on x No

Commonwealth land?
Yes (provide details below)
If yes, nature & extent of likely impact on the whole environment (in addition to 3.1(g))

001 Referral of proposed action vJUL08 page 13 of 22

3.3 Other important features of the environment
Provide a description of the following features of the project area and the affected area.

3.3 (a) Soil and vegetation characteristics

Site investigations have not been undertaken for the site as yet. These studies will be undertaken during the EIS phase.

The Land Management Manual lists the common and associated soils for the various Land Resources Areas (LRAs)
mapping in the area. The common soils associated with the LRAs identified in the project area are:
- Older alluvial plains with black, self mulching cracking clays;
- Basaltic uplands with black to dark brown clay or clay loams on decomposing basalt. Soil depth varies with position on
the slopes. All the soils are susceptible to severe rill and gully erosion; and
- Poplar Box Walloons with black self mulching cracking clays on Walloon sandstone. The soils are susceptible to
sever, sheet, rill and gully erosion.

The majority of the land suited to cultivation has been cleared of vegetation. Remnant vegetation exists on the upper slope
and crest of the basalt hill and plateaus and areas of Walloon sandstone soils. The latest RE map for the area lists a small
area of dominant ‘endangered’ ecosystem of 11.3.21 Queensland Bluegrass and ‘not of concern’ RE 11.8.5 Eucalyptus
orgadophila open woodland.

3.3 (b) Water flows, including rivers, creeks and impoundments

Hodgson Creek starts approximately 15km south of Toowoomba and travels 30km before flowing southwest alongside the
eastern side of project area where it is flanked by deep alluvial plains. Hodgson Creek then flows southwest for a further
15km to join the north branch of the Condamine River. The catchment at Balgownie (approximately 2km downstream of
Felton) is approximately 560km2 with an annual discharge range of 333-154523 ML over an 18 year period. The hydrology
of the Hodgson Creek has been studied and the assessment on the riparian buffer zones that must be maintained either
side of Hodgson Creek to ensure that properties upstream of the project are not impacted adversely during flood events
has been assessed however the impact of the infrastructure will be assessed during detailed design.

The groundwater sources in the Project area are the alluvial plains of Hodgson Creek, the Walloon sandstones, the Hutton
(Marburg) sandstones and the basalts. All the groundwater resources in the area have been allocated for use by
landholders. The exploration activities have located groundwater in the overburden over the coal measure continue
hydraulic studies to determine their association with the alluvial of Hodgson Creek. The quality of this water is suitable for
stock but not for irrigation.

3.3 (c) Outstanding natural features, including caves

There are no outstanding natural features to report.

3.3 (d) Gradient

The project area runs alongside the alluvial plains of Hodgson Creek rising to the low slopes of Walloon sandstones and
finally to the steep slopes of the remnant basalt ridges and plateaus. The Central Darling Downs Land Management
Manual produced by the DNRW has identified the following Land Resources Areas in the Project site:

- Older Alluvial Plains: Broad level plains of basaltic alluvium with open grasslands;
- Basaltic Uplands: Undulating rises and rolling low hills rising to steep hills with coolibah open woodlands; and
- Poplar Box Walloons: Undulating rises and low hills on Walloon sandstone with popular box open woodlands.

3.3 (e) Buildings or other infrastructure

Within the project site there are a small number of houses and agricultural farming sheds and associated infrastructure.
There are also some local roads.

3.3 (f) Marine areas

No marine areas.

3.3 (g) Kinds of fauna & flora

Typical of much of the Darling Downs of south-east Queensland, native fauna habitats have been greatly impacted by
agricultural development in the Felton East area. Many natural habitats occur as remnants within this agricultural

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landscape, and some species of native fauna are able to exploit agricultural land to varying degrees. Some species are;
however, locally restricted to, or highly dependant on the remnants of the natural landscape.

QPWS (EPA) records indicate the presence of the following threatened (rare, vulnerable or endangered) species within 25
km of Felton East, listed under the Nature Conservation Act 1992 (Queensland) and / or Environment Protection and
Biodiversity Conservation Act 1999 (Australia):

- Grey goshawk (Accipiter novaehollandiae)

- Major Mitchell's Cockatoo (Lophochroa leadbeateri)
- Glossy Black Cockatoo (Calyptorhynchus lathami)
- Painted Honeyeater (Grantiella picta)
- Swift Parrot (Lathamus discolour)
- Lewin's Rail (Lewinia pectoralis)
- Powerful Owl (Ninox strenua)
- Black-breasted Button-quail (Turnix melanogaster)
- Bulloak Jewel (butterfly) (Hypochrysops piceata)
- Spotted-tailed Quoll (Dasyurus maculatus maculatus)
- Brush-tailed Rock-wallaby (Petrogale penicillata)
- Koala (southeast Queensland) (Phascolarctos cinereus (south east Queensland bioregion)
- Long-legged Worm-skink. (Anomalopus mackayi) (also known as Five-clawed worm-skink)

These species above are generally associated with native vegetation, and so the remnant natural habitats around Felton
East are of possible significance to them. In contrast; however, a population of the Grassland Earless Dragon
(Tympanocryptis pinguicolla) was discovered in recent years on the Darling Downs to the east of Pittsworth. This species
had been considered extinct in Queensland until its rediscovery, and is now listed as Endangered (NC Act 1992). All
specimens are known from highly modified agricultural land, typically “small holdings devoted to strip-farming of mixed
crops, such as cotton, sorghum, maize and sunflower interspersed with fallow land. Large areas of native and introduced
grasses existing as headlands, and along drainage lines are a feature of the farmlands where the dragon exists” (EPA,
2008: www.epa.qld.gov.au). It is possible this species might also occur in the Felton East area.

A flora and fauna assessment is currently being undertaken on the site.

3.3 (h) Current state of the environment in the area

Include information about the extent of erosion, whether the area is infested with weeds or feral animals and whether the
area is covered by native vegetation or crops.

The project area is solely for agricultural uses.

3.3 (i) Other important or unique values of the environment

The proposed site is not located near any unique values of the environment. The site is located to the west of Hodgson
Creek, which drains into the Condamine River. This river is part of the Condamine-Balonne Basin. The Narran River is also
part of the Condamine-Balonne basin and the Narran River terminates at the Narran Lake Nature Reserve in NSW which is
a wetland of national significance. This wetland is over 400km from Hodgson Creek and will not be impacted by the
proposal.

3.3 (j) Tenure of the action area (eg freehold, leasehold)

The tenure of the properties are all freehold.

3.3 (k) Existing land/marine uses of area

The existing uses of the proposed site is agriculture.

3.3 (l) Any proposed land/marine uses of area

There are currently no other proposed uses for the area.

001 Referral of proposed action vJUL08 page 15 of 22

4 Measures to avoid or reduce impacts
Air
Impacts on air quality will be generated by the following activities:
- dust from the mining operations and coal handling processes;
- flue gas from the gas turbines;
- fugitive emissions including odours; and
- greenhouse gas release from the coal reserves during the mining and processing.

Mitigation
Dust generation will be managed by water spraying supplemented with dust suppressant agents when required. Forest
plantations will be established within buffer zone around the processing plant and mine.

The combustion of coal will occur in a pressurised gasification unit, which will convert approximately 95% of the coal’s
carbon into synthetic gas (CO + H2). During the combustion process the ash content of the coal (approximately 20%) with
fuse at the high combustion temperature and drop to the bottom of the gasification module. The syngas generated will
leave the gasifier with a small proportion of particulates. To ensure the complete removal of particulates the syngas stream
will pass through a series of scrubbing units. These will include:
1. Venturi Scrubber
2. Candle Filter
3. Activated Carbon Bed

The Venturi scrubber will contact the gas stream exiting the gasifier with a mist of water. This contact between the gas and
water will capture a large fraction of particulates in the gas stream.
After the scrubber a candle filter unit will be installed to capture the remaining particulate quantity in the stream.
Finally an activated carbon bed will be installed downstream from the candle filter to ensure heavy metals such as mercury
are removed from the stream.
Essentially, the plant will be a zero particulate emitter to the surrounding atmosphere as all particulates will be contained
within the entire process.

Gas Turbine Module

The gas turbine will utilise the un-reacted syngas from the DME reactor. The gas turbine will be clean burning with zero
particulate emissions. The outlet gas composition will mainly comprise of carbon dioxide, water vapour and nitrogen.

Potential odour will be controlled by the development of standard operating procedures to ensure that the air is evacuated
and treated before maintenance is conducted.

CO2 Emissions
The two carbon dioxide emission locations for the Felton DME project will occur in the carbon dioxide gas cleaning unit and
the gas turbine generators. A summary of the carbon dioxide emissions is shown in the table below.

CO2 from Gas Cleaning Unit (CO2 tpd) CO2 Emitted from Gas Turbine (CO2 tpd)

1340 492

Two carbon dioxide intensity values were calculated: kgCO2/kgDME and kgCO2/MWh. The first value relates the amount
of carbon dioxide released in the gas cleaning column per tonne of DME produced. The second value relates the amount of
carbon dioxide produced for every MWh of electricity generated using the remaining syngas from the DME reactor.
If the carbon dioxide stream exiting the cleaning unit is sequestered the only carbon dioxide emission generated from the
plant will occur from the gas turbine. The carbon dioxide emission intensity (with sequestration) in relation to DME
production equals 1 kgCO2/kgDME. If no sequestration is in place the intensity increases to 4 kgCO2/kgDME.
The gas turbine module will receive un-reacted syngas from the DME reactor. The gas exiting the DME reactor will contain
and energy content to power a 43MW conventional turbine set or 66 MW for a gas turbine set utilising a waste heat
recovery. The carbon dioxide intensity for each of the units is shown below:

001 Referral of proposed action vJUL08 page 16 of 22

 Conventional Gas Turbine (kg CO2/MWh) Gas Turbine with HRSG (kg CO2/MWh)
473 312

The intensity of carbon dioxide from these units is one-half to one-third of a conventional coal fired power station. Typical
sub-critical coal fired power stations generate carbon dioxide at approximately 1000kgCO2/MWh.

Mitigation
The process plant configuration can be tailored for production of high purity CO2 gas, which can be used by food
manufacturers and by the oil industry for Enhanced oil Recovery from depleted oil fields such as the Moonie oil field, –km to
the west and connected by a gazetted pipeline corridor passing within –km of the project area.. In additional to potential
CO2 recovery and storage, Ambre Energy is planning to implement the following action to offset CO2 emissions:
- planting of soft and hard wood plantations within the buffer zone around processing plant and mine and on the waste
dumps reclaimed after open cut mining;
- Application of Ambre Energy’s technology and process configurations including concentration and capture of CO2 to
other coal producing regions such as Indonesia, China and India.

Groundwater
Initially mining will intersect ground water resources in the Walloon coal measure and although unlikely, may intersect
groundwater in the alluvials of Hodgson Creek. Eventually aquifers in the basalts may be intersected.

Mitigation
Groundwater studies will be conducted prior to mining operations commencing to quantify aquifers and to ascertain the
impact of mining on these aquifers. The water from these resources if fully allocated to the farming community, and
discussions will be held with DNRW as to the process required to access these resources. Water extracted by the mining
process will be used for such purposes dust suppression.

Surface Water
There is the potential for sediment to enter waterways due to mining operations.

Mitigation
As surface water will be a valuable commodity, runoff will be harvested for re-use where possible. Adequate erosion and
sediment control devices will be constructed onsite and levees will be constructed to retain runoff. Levees will be located to
leave a buffer zone to accommodate flooding. The size of this buffer has been validated with a hydrological study.
Individual work areas with high sediment yield potential such as the Run Of Mine (ROM) will be equipped with sediment
sumps to remove coarse sediment before flowing into large levee sumps.

Runoff from the mining activities will be managed through a series of sediment dams. Drainage lines will be constructed to
direct runoff from unmined areas around the mining and processing operations. Diversion drains will be designed and
constructed using conservative design criteria to minimise water velocities. The water will be retained for recycling.

A hydrological study will be commissioned to identify the changes in flood levels for various flood events. This study will
identify farming areas that may be affected by the proposed development so mitigation measures can be implemented.

Flora and Fauna

There is very little native vegetation remaining onsite. The vegetation that is located onsite will need to be removed for
mining activities. Vegetation located on hilltops will not be removed. A small area of Queensland Bluegrass is located in
the southern portion of the site. “Not of concern” Regional Ecosystems may need to be impacted by the proposed
development. The value and extent of these areas is still unknown; however, this will be assessed as part of the detailed
flora and fauna investigation that is currently being undertaken.

Mitigation

001 Referral of proposed action vJUL08 page 17 of 22

A rehabilitation program is being introduced onsite and at other public access locations in the vicinity of the project. This
program will reintroduce native trees species and grasses, where possible, into areas not impacted by activities. This will
involve both direct seeding and the use of tube stock.

The flora and fauna survey will identify the importance of the existing vegetated areas as fauna habitats. The
reestablishment of these native trees that will be linked by vegetation corridors to the adjacent fauna habitats will ensure
that local fauna isn’t impacted by the project. The fauna survey will determine the requirements of management and
mitigation. For example, a spotter catcher may be required for during vegetation clearing.

001 Referral of proposed action vJUL08 page 18 of 22

5 Conclusion on the likelihood of significant impacts
Identify whether or not you believe the action is a controlled action (ie. significant impacts on the matters protected under
the Act are likely) and the reasons why. If you think that the action is a controlled action, you must also identify the
relevant protected matters in section 5.3. (An action is a controlled action if it has, will have, or is likely to have a significant
impact on a matter protected by a provision of Part 3 of the EPBC Act).

5.1 Do you THINK your proposed action is a controlled action?

No, complete section 5.2
x Yes, complete section 5.3

5.2 Proposed action IS NOT a controlled action.

Specify the key reasons why you think the proposed action is not a controlled action (ie. NOT LIKELY to have significant
impacts).

5.3 Proposed action IS a controlled action

Type ‘x’ in the box for the matter(s) of the EPBC Act that you think are likely to be impacted (controlling provisions).

Matters likely to be impacted

sections 12 and 15A (World Heritage)
sections 15B and 15C (National Heritage places)
sections 16 and 17B (Wetlands of international importance)
X sections 18 and 18A (Listed threatened species and communities)
sections 20 and 20A (Listed migratory species)
sections 21 and 22A (Protection of the environment from nuclear actions)
sections 23 and 24A (Marine environment)
sections 26 and 27A (Protection of the environment from actions involving Commonwealth land)
section 28 (Protection of the environment from Commonwealth actions)
Sections 27B and 27C (Commonwealth Heritage places outside the Australian Jurisdiction)

Specify the key reasons why you think the proposed action is a controlled action (ie. LIKELY to have significant impacts).
It is proposed that the action is a controlled action as the proposal has the potential to have a significant impact on matters
of national significance. There is a small area of threatened ecosystem mapped in the south of the site for stage 2.

There is also the potential to impact threatened species due to potentially impacting the available habitat in the area.
Vegetation on hilltops, revegetation will occur onsite and nearby regional ecosystems may not be impacted by the project,
however there are protected species located on or near the site which could be impacted. A detailed flora and fauna
assessment is currently being undertaken to determine the impacts to these species and areas.

6 Environmental history of the responsible party

NOTE: If a decision is made that a proposal needs approval under the Act, the Minister will also decide the assessment
approach. The EPBC Regulations provide for the environmental history of the party proposing to take the action to be taken
into account when deciding the assessment approach for actions that need approval under the Act.

001 Referral of proposed action vJUL08 page 19 of 22

 Yes No
6.1 Does the party taking the action have a satisfactory record of responsible x
environmental management?

Provide details
Ambre Energy believe that the long-term viability of their company and its projects will depend
on the thoroughness with which they control the impacts of their projects and rehabilitate areas
which they have mined or otherwise affected. Detailed EMPs will be implemented for all their
projects. Rehabilitation forms part of each of their projects.

6.2 Has the party taking the action ever been subject to any proceedings under a x
Commonwealth, State or Territory law for the protection of the environment or the
conservation and sustainable use of natural resources?

If yes, provide details

6.3 If the party taking the action is a corporation, will the action be taken in accordance x
with the corporation’s environmental policy and planning framework?

If yes, provide details of environmental policy and planning framework

Please see attached HS&E Policy

6.4 Has the person proposing to take the action previously referred an action under the
EPBC Act? x

Provide name of proposal and EPBC reference number (if known)

7 Information sources and attachments

(For the information provided above)

7.1 References
• List the references used in preparing the referral.
• Highlight documents that are available to the public, including web references if relevant.

• EPBC Protect Matters Search Database

• Environmental Protection Agency Wildlife online database
(https://www.epa.qld.gov.au/nature_conservation/wildlife/wildlife_online/)
• Environment Protection and Biodiversity Conservation Act 1999.
• Nature Conservation Act 1992
• http://www.anra.gov.au/
• http://www.epa.qld.gov.au
• NRW Central Darling Downs Land Management Manual.

001 Referral of proposed action vJUL08 page 20 of 22

7.2 Reliability and date of information
All databases were searched within the last month and legislation that has been reviewed is current. Documents are the
most recent versions of the documents.

7.3 Attachments
Indicate the documents you have attached. All attachments must be less than two megabytes so they can be published on
the Department’s website. Attachments larger than two megabytes (2mb) may delay the processing of your referral.

9
attached Title of attachment(s)
You must attach figures, maps or aerial photographs
showing the project locality (section 1) X
figures, maps or aerial photographs
showing the location of the project in
respect to any matters of national X
environmental significance or important
features of the environments (section 3)
If relevant, attach copies of any state or local government
approvals and consent conditions (section X
2.3)
copies of any completed assessments to
meet state or local government approvals X
and outcomes of public consultations, if
available (section 2.4)
copies of any flora and fauna investigations
and surveys (section 3) X
technical reports relevant to the
assessment of impacts on protected
matters and that support the arguments X
and conclusions in the referral (section 3
and 4)
report(s) on any public consultations X
undertaken, including with Indigenous
stakeholders (section 3)

8 Contacts, signatures and declarations

NOTE: Providing false or misleading information is an offence punishable on conviction by imprisonment and fine (s 489,
EPBC Act).

Under the EPBC Act a referral can only be made by:

• the person proposing to take the action; or
• a Commonwealth, state or territory government, or agency that is aware of a proposal by a person to take an action,
and that has administrative responsibilities relating to the action*1.

001 Referral of proposed action vJUL08 page 21 of 22