Queensland Energy Resources

Queensland Energy Resources Limited, commonly known as QER or QERL, is an Australian company established to develop oil shale resources and associated shale-oil production technologies in Queensland. Its principal assets and activities have been associated with the Stuart Oil Shale Project at Yarwun, near Gladstone, and the McFarlane oil shale deposit near Proserpine. The company’s work has combined resource development, process-technology testing, demonstration-scale fuel production, and efforts to obtain approval and investment for a larger commercial operation. QER was formed in February 2004 after acquiring the assets of the Stuart Oil Shale Project from receivers of Southern Pacific Petroleum N.L., the project’s previous developer. The Stuart project had already experienced commercial and technical difficulties. In July 2004, QER announced that the plant would be shut down, citing economic and environmental considerations. Rather than immediately pursue full-scale production, the company subsequently undertook technology and feedstock testing. Between 2005 and 2007, oil shale from its Queensland deposits was tested at a pilot facility in Rifle, Colorado, operated by Shale Technologies. The company later reassessed its processing approach. In August 2008, QER announced that it would not continue with the Alberta Taciuk Processor technology associated with the existing plant. It selected Paraho II technology instead, while the ATP-based equipment was dismantled and obsolete components were offered for sale. That same month, the Queensland Government announced a 20-year moratorium on oil-shale mining at the company’s McFarlane deposit, placing an important constraint on the development of one of QER’s major resource holdings. QER’s next major phase focused on a demonstration plant at Yarwun. In May 2010, the company announced plans for a small-scale shale-oil demonstration facility at the Stuart site. The plant produced its first oil in October 2011 and began producing ultra-low-sulphur diesel and aviation fuel in September 2012. These outputs were intended to demonstrate that the selected process could convert Queensland oil shale into refined liquid fuels rather than merely produce an intermediate product. Following a four-year industry review and a full environmental audit of QER’s operations, the Queensland Government announced in February 2013 that a commercial oil-shale industry could proceed under strict environmental conditions. The policy allowed QER to advance the Gladstone-area demonstration project toward commercial development while imposing significant environmental controls. QER subsequently reported completion of its demonstration-plant program and sought investment for a proposed commercial facility designed to produce approximately 8,000 barrels per day of finished fuels. QER’s business is therefore best understood as a resource and technology-development venture rather than a conventional consumer-facing fuel brand. Its typical outputs are oil shale-derived liquid fuels, including ultra-low-sulphur diesel and aviation fuel, while its underlying assets consist of mining tenements, oil-shale deposits, processing technology, and demonstration infrastructure. Publicly available reference material identifies the company’s projects and development plans but does not establish a current operating status, ownership structure, listing status, or present commercial production position.

Queensland Energy Resources was created in February 2004 to acquire and continue the Stuart Oil Shale Project after the previous developer, Southern Pacific Petroleum N.L., entered receivership. The acquisition gave QER control of the Stuart project and related assets at Yarwun in Queensland’s Gladstone region. The inherited operation faced both commercial and environmental difficulties, and in July 2004 QER announced that the plant would be shut down. The company then concentrated on testing its resource and evaluating alternative processing methods. From 2005 to 2007, oil shale from Queensland deposits was processed at a pilot facility in Rifle, Colorado, operated by Shale Technologies. This overseas testing phase was used to examine the suitability of the company’s deposits and to inform the selection of a future commercial process. In August 2008, QER announced a major technology change. It abandoned the Alberta Taciuk Processor technology used or contemplated for the existing plant and selected Paraho II technology instead. The ATP-based plant was to be dismantled, with obsolete components sold. The same year brought a significant regulatory restriction: the Queensland Government announced a 20-year moratorium on oil-shale mining at the McFarlane deposit near Proserpine. McFarlane was described as one of the company’s substantial Queensland oil-shale resources, but the moratorium limited its near-term development prospects. QER subsequently pursued a demonstration-scale project at the Stuart site. In May 2010, it announced plans for a small shale-oil demonstration plant at Yarwun. The plant produced its first oil on 6 October 2011. By September 2012, it was producing ultra-low-sulphur diesel and aviation fuel, demonstrating the potential to convert oil shale into finished fuel products. The regulatory environment changed in February 2013 after a four-year industry review that included a full environmental audit of QER’s operations. The Queensland Government stated that a commercial oil-shale industry could be developed under strict environmental conditions. Its policy allowed QER to progress the Gladstone-area demonstration plant toward commercial scale while requiring strong environmental safeguards. QER later described the demonstration-plant program as successfully completed and sought investment for a proposed commercial facility capable of producing about 8,000 barrels per day of finished fuels. The available reference material does not confirm whether that proposed facility was built, whether commercial production began, or what the company’s current ownership and operating status may be. QER’s documented history therefore ends with a transition from demonstration technology toward a proposed commercial oil-shale business, subject to financing, approvals, environmental requirements, and further development.

• 2013

  Commercial development allowed under strict conditions

  [1]Queensland Energy Resourcesen.wikipedia.org

  Following a multi-year review and environmental audit, Queensland approved a policy framework allowing commercial oil-shale development subject to strict environmental controls.

• 2012

  Diesel and aviation fuel production begins

  [1]Queensland Energy Resourcesen.wikipedia.org

  The demonstration facility began producing ultra-low-sulphur diesel and aviation fuel.

• 2011

  First oil produced at Yarwun

  [1]Queensland Energy Resourcesen.wikipedia.org

  The Yarwun demonstration plant produced its first oil on 6 October.

• 2010

  Yarwun demonstration plant announced

  [1]Queensland Energy Resourcesen.wikipedia.org

  QER announced plans for a small-scale shale-oil demonstration plant at Yarwun.

• 2008

  Paraho II selected over ATP technology

  [1]Queensland Energy Resourcesen.wikipedia.org

  QER announced that it would use Paraho II technology instead of the Alberta Taciuk Processor approach and would dismantle the ATP-based plant.

• 2008

  McFarlane deposit placed under a 20-year moratorium

  [1]Queensland Energy Resourcesen.wikipedia.org

  The Queensland Government announced a 20-year moratorium on oil-shale mining at the McFarlane deposit.

• 2005

  Pilot testing begins in Colorado

  [1]Queensland Energy Resourcesen.wikipedia.org

  Oil shale from QER’s Queensland deposits began being tested at a Shale Technologies pilot facility in Rifle, Colorado; testing continued through 2007.

• 2004

  QER is formed and acquires Stuart project assets

  [1]Queensland Energy Resourcesen.wikipedia.org

  Queensland Energy Resources was formed in February 2004 and acquired the Stuart Oil Shale Project assets from receivers of Southern Pacific Petroleum N.L.

• 2004

  Stuart plant shutdown announced

  [1]Queensland Energy Resourcesen.wikipedia.org

  QER announced in July that the Stuart plant would be shut down for economic and environmental reasons.

An Australian oil-shale resource developer focused on demonstrating and commercialising technologies for converting Queensland oil shale into finished liquid fuels.

• Mineral resource

  Oil shale

  Oil shale is QER’s principal resource base. The company held mining tenement rights over several Queensland deposits, including the Stuart resource at Yarwun and the McFarlane deposit near Proserpine. Its development model involved extracting or otherwise processing oil shale as feedstock for the production of liquid hydrocarbons.

• Synthetic and unconventional fuel

  Shale oil

  Shale oil is the principal intermediate fuel output associated with QER’s oil-shale processing program. The company tested shale from its Queensland deposits and operated a demonstration plant intended to show that the resource could be converted into useful liquid-fuel products at larger scale.

• Refined fuel · 2012

  Ultra-low-sulphur diesel

  The Yarwun demonstration plant began producing high-quality ultra-low-sulphur diesel in September 2012. This output was an important demonstration of QER’s objective to produce finished fuels rather than only raw shale oil or an unrefined process stream.

• Refined fuel · 2012

  Aviation fuel

  Aviation fuel was among the finished fuel products reported from the Yarwun demonstration program beginning in September 2012. The available reference material does not specify a commercial brand name, certification regime, or continuing production status.

• 2013

  Seek commercial-scale developmentStrategy

  Background

  The Queensland Government’s industry review and environmental audit produced a policy framework permitting commercial oil-shale development under strict conditions.

  Action taken

  QER completed its demonstration-plant program and sought investment for a proposed commercial facility targeting approximately 8,000 barrels per day of finished fuels.

  Aftermath

  The available reference does not establish whether the proposed commercial facility was built or reached commercial production.

  Proposed finished-fuel capacity. Approximately 8,000 barrels per day (2013)

  Source

• 2010

  Develop a Yarwun shale-oil demonstration plantProduct launch

  Background

  After pilot testing and a change in processing technology, QER sought to validate its approach at a Queensland site.

  Action taken

  The company announced plans for a small-scale demonstration plant at Yarwun.

  Aftermath

  The facility produced first oil in 2011 and reported diesel and aviation-fuel production in 2012.

  Source

• 2008

  Replace ATP processing with Paraho IIStrategy

  Background

  QER reassessed the technology associated with its oil-shale processing plant.

  Action taken

  It selected Paraho II technology instead of the Alberta Taciuk Processor approach and began dismantling the ATP-based plant, with obsolete components to be sold.

  Aftermath

  The technology change shaped the design of the subsequent demonstration program.

  Source

• 2004

  Shut down the Stuart plantStrategy

  Background

  QER inherited the Stuart Oil Shale Project after acquiring its assets from receivers of the previous developer.

  Action taken

  The company announced that the plant would be shut down because of economic and environmental considerations.

  Aftermath

  QER moved toward testing and redevelopment rather than immediately continuing the inherited plant’s operations.

  Source

• 2013

  Queensland permits commercial oil-shale development under environmental controls[1]Queensland Energy Resourcesen.wikipedia.org

  Regulation

  After an industry review and environmental audit, the Queensland Government announced that commercial oil-shale development could proceed under strict environmental conditions.

• 2012

  Yarwun begins producing diesel and aviation fuel[1]Queensland Energy Resourcesen.wikipedia.org

  Product launch · Product generation

  The Yarwun facility began producing high-quality ultra-low-sulphur diesel and aviation fuel from the demonstration process.

• 2011

  Yarwun demonstration plant produces first oil[1]Queensland Energy Resourcesen.wikipedia.org

  Product launch · Product generation

  The demonstration plant at Yarwun produced its first oil, marking a key technical milestone for QER’s development program.

• 2010

  QER announces Yarwun demonstration-plant plan[1]Queensland Energy Resourcesen.wikipedia.org

  Product launch

  QER announced plans to construct a small-scale shale-oil demonstration plant at Yarwun, the site of the Stuart project.

• 2008

  QER changes oil-shale processing technology[1]Queensland Energy Resourcesen.wikipedia.org

  Other

  The company announced that it had rejected the Alberta Taciuk Processor approach in favor of Paraho II technology and would dismantle the ATP-based plant equipment.

• 2008

  Queensland Government imposes McFarlane mining moratorium[1]Queensland Energy Resourcesen.wikipedia.org

  Regulation

  The Queensland Government announced a 20-year moratorium on oil-shale mining at QER’s McFarlane deposit.

• 2004

  QER announces shutdown of Stuart plant[1]Queensland Energy Resourcesen.wikipedia.org

  Other

  Queensland Energy Resources announced that the Stuart plant would be shut down, citing economic and environmental reasons.

1. 1Queensland Energy Resourcesen.wikipedia.org