Offshore renewable energy infrastructure area proposal: Pacific Ocean off Hunter

Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

1. Introduction
Advent Energy is committed to the decarbonisation of the global energy system, in a manner which ensures the continued supply of affordable, reliable energy to power the economy, support employment and facilitate the transition to net zero in a sustainable manner. It believes that this will be achieved through the use of a mixture of technologies, encompassing renewable resources, carbon sequestration and gas.
Based on the work Advent has carried out during its tenure of the PEP11 permit, including seabed sampling studies on gas seeping to the seafloor associated with pockmarks, Advent has confirmed through independent experts report that PEP11 has the potential to be a significant gas resource.
There are and will be offshore areas where Wind, Petroleum and Carbon Sequestration activities will overlap, Advent believes a holistic approach should and will be taken to ensure energy is produced in an optimal manner.
The North Sea is an example of different energy systems co existing which demonstrates that offshore wind and gas are compatible and are complimentary.

Several partnerships between the oil and gas industry and offshore wind developers have emerged in recent years (Credit: Kaisn/Shutterstock) in NS Energy “Why offshore wind partnerships are proving so attractive to oil and gas companies”.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

2. PEP11 Permit
Petroleum Exploration Permit 11 (PEP11) lies off the coast of New South Wales with key zones offshore the Hunter region and is operated by Asset Energy who have an 85% interest in the permit with JV partner Bounty Oil and Gas holding the remaining 15%. Asset Energy is a wholly owned subsidiary of Advent Energy. Advent have had the permit since 2004.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

The permit is highly prospective with geological and geophysical work carried out which shows several areas across the licence of different exploration play types.

The pale green dotted border area in the insert shows the proposed windfarm area.
3. Geoscience Australia Studies
The area was surveyed by Geoscience Australia in 2006 as part of a government funded study into the potential for tsunami activity associated with underwater canyons with the capacity for periodic underwater debris slumps leading to instability and the generation of tsunami waves.
The seismic surveys conducted by Geoscience Australia demonstrated the presence of these canyons at the break in the continental slope towards the eastern edge of what is now the
PEP11 licence area. These linear canyons penetrate upslope to 200 m water depth off
Newcastle. Images below from Boyd et al 20091
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

The presence of multiple pockmarks on the seabed at shallower depths across the area was also established by a seismic survey carried out in 2004 by a previous Operator of the licence.
Pockmarks are indicators of sometimes significant volumes of gas seepage and, as in other hydrocarbon areas such as Norway and the Gulf of Mexico, are indicators of prospectivity for hydrocarbons. “Seepage has also given some of the first indications of the presence of petroleum in most of the world’s petroleum producing regions, with at least half the reserves proved by 1952 discovered by drilling on or near seeps (Judd and Hovland, 2007)” 2.
The pockmarks themselves represent geotechnical risk to any structures planned to be located on / anchored to the seabed and any offshore developments will require to take this into account. The largest of these pockmarks is 1 km in diameter and 70 m deep.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

Core samples for geotechnical analysis would require to be taken from any site which was to be used for energy infrastructure. This may be fixed installations on the seabed and/or floating vessels which would require to be anchored securely. A clear understanding of the location of the pockmarks and canyons would be essential to ensure that any fixed and floating installations (as would be required for any floating wind turbines) were located with minimal risk to the environment.
It is noted that previous work by Boyd, Ruming and Roberts 20043 identified areas offshore
NSW where bed rock was present on the seabed, which could present challenges when anchoring floating structures.

4. Gas is a Low Environmental Impact Energy Resource
At this stage, in advance of proving up gas reserves by drilling, is it premature to identify the development strategy for PEP11 but it is likely that there would be installations at a number of locations across the PEP11 licence area.
A 2010 report on the areas prospectivity identified multiple potential locations. It is possible that in a success scenario, several locations would require gas production infrastructure.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

Such a low number of locations is achievable by consequence of the advancement of directional drilling over the last three decades, extending the reach by which wellbores can be placed, thereby enabling reserves to be exploited from central locations with less impact on the environment.
5. Gas Production Infrastructure
The spatial requirements and visual impact of offshore gas production infrastructure is extremely low. Detailed description of such plant for PEP11 would be premature in advance of a successful exploration drilling campaign, however it is possible to give an overview based on other gas producing fields in Australia and elsewhere.
Much of the equipment is located on the seabed, connected by subsea pipelines or umbilicals. A small steel jacket may be pile driven into the sea floor, rising several tens of metres above sea level.
Floating processing and offtake vessels may also be present.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

Another possibility is a pipeline directly to the shore, which may be optimal given that many of the structures mapped lie within 25 to 75 km from the onshore infrastructure such as the
Jemena Gas Trunk pipeline.
In the event of commercial success in PEP11, Advent would be willing to discuss with Wind
Farm Operators the optimal routing of any pipelines to and from shore for carbon sequestration and for gas production (The current windfarm area plan intersects a possible gas pipeline) and investigate any synergies which may arise.
6. Current Status of PEP 11
The PEP11 licence was due for renewal in February 2021. An application for a variation and suspension of the work program conditions to which PEP-11 is subject and for a related extension of term was made to the Commonwealth-New South Wales Offshore Petroleum
Joint Authority in January 2020. A further application for an extension of term under the pandemic measures of the time was submitted in March 2021. At the time of making this submission neither application has been finalised by the Joint Authority. Until these applications are finalised, PEP11 continues in force by operation of s 265A (1) of the
Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth).
The project and work program are at an advanced stage of progress, a Basis of Well Design has been completed for Seablue-1 (being the next step in the proposed work program), multiple tenders were issued, contracts have been awarded for long lead items and efforts to source a suitable drilling rig are ongoing.
The Environmental Plan for the proposed exploration well is at the final draft stage, with pre submission consultation work ongoing.
Upon any variation of the work program and extension of the licence being granted, Asset will be ready to drill Seablue-1, at Baleen, within approximately 12 months, subject to regulatory approvals and drilling rig availability. As indicated Seablue-1 would be drilled approximately 30 km southeast of Newcastle and 26 km from shore at the nearest point.

7. Energy Security and Net Zero
Reduction of carbon emissions and energy security have recently become of critical importance, with the importance of gas as a key enabler of the energy transition to net zero.
7.1 Energy Security
The Hunter region and surrounding area in NSW is one of the most industrialised
areas in the country and is estimated to produce around 30% of Australia’s CO2
emissions.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

With coal fired power stations due to close in the short term, renewables yet to be built at scale, little gas produced in NSW and the Bass Strait fields now entering the advanced stage of decline, a critical shortage of energy is looming, with around 50% of current power generation due to come offline over the coming years.
It is also evident from recent experience in regions which have been early adopters of renewables at scale, such as Europe, USA and elsewhere that significant dispatchable power capacity is required, as an ‘On Demand’ backup to energy sources that are weather dependent, often for periods of days and weeks at a time, something that is well beyond the current and foreseeable capability of battery technology, in terms of duration, economics and availability of raw materials.
In the absence of nuclear power, gas is the lowest acceptable CO2 emitting solution for this dispatchable power.
Gas is also an important feedstock for critical chemicals used in agriculture and industry.
7.2 Hydrogen
There are also energy efficient pathways, with zero CO2 emissions and no use of water in the process, to the production of hydrogen at scale utilising methane as feedstock.
Advent Energy and its investee BPH are involved in the development and commercialisation of a startup, Clean Hydrogen Technologies, which uses thermocatalytic pyrolysis to produce Turquoise Hydrogen with carbon nanotubes a valuable by-product-gas is a feedstock for this.
The hydrogen project is at the precommercial stage and the objective is to produce hydrogen at a cost as low as US$2 per kg. It is envisaged that gas that comes from
PEP11 would be used as feedstock for this system.
7.3 Carbon Capture Storage
Asset Energy has also committed to evaluating the formations encountered on the
Seablue-1 exploration well for carbon sequestration. The well programme has also been designed to utilise steel and barrier technology that is capable of withstanding the effects of CO2.
There is an opportunity to deepen Seablue-1 approximately 1,000 metres below the main gas target to enable evaluation of the potential for storage of CO2 in all formations from 700 metres to the end of the well to be carried out using additional wireline logging tools.
The Sydney Basin is a major contributor to Australia’s greenhouse gas emissions.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

• The NSW Sydney Basin region contains the largest number of stationary CO2
emission sources in Australia including oil refineries, coke ovens and power stations.
The Offshore Sydney basin offers a substantial opportunity to make a meaningful
impact on the reduction of CO2 emissions through CCS -Carbon Capture and Storage
(geo-sequestration of CO2 emissions)
• CCS is part of a suit of solutions with the potential to mitigate greenhouse gas
emissions and help address climate change
• Independent published research has indicated at least 2 TCF (Trillion Cubic Ft) of
CO2 storage may be feasible in the offshore Sydney Basin 2 These potential areas are
shown in the map above.

It is estimated that a prospective gas resource of 5.5 TCF, if proven, could provide all of NSW gas needs for 20 years. (Refer ASX announcement of 21 March 2023 of ASX: BPH)
The Seablue-1 well, on the Baleen Prospect, is planned to be drilled over a 6-week window in 2024 pending regulatory and rig availability.
Identification of the hydrocarbon type as gas demonstrates that PEP11 has the potential to be a good fit with the transition to net zero.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

8. Impact of the Proposed Windfarms on activity in PEP11
Advent welcomes the drive towards building more renewable energy infrastructure, it is becoming increasingly evident that as the transition proceeds across the globe that weather dependent energy such as wind and solar will require significant dispatchable backup and that gas is an acceptable solution.
Given the high prospectivity of the entire PEP11 licence, as evidenced by multiple seeps and seismic data, it is a potential concern that in the future there could be overlap between the windfarms and any gas development infrastructure, from both physical and legislative points of view.
In the event of this occurring Asset would work collaboratively with the windfarm proponent, regulators and other stakeholders.

Advent is a member of the industry body, the Australian Petroleum Production and
Exploration Association, APPEA, which is looking at the interplay between offshore windfarms and petroleum licences.
Offshore Renewable Energy Infrastructure Area Proposal
Pacific Ocean off Hunter, Consultation Submission, April 2023
Unit 12, Level 1, 114 Cedric St, Stirling, WA 6021
ABN 16 120 013 390

Should commercial discoveries of gas occur across PEP11, Advent would expect and aspire to cooperation with the regulatory authorities and developers of wind power to ensure that an optimal outcome for the people of New South Wales and Australia is reached.
Asset Energy are committed to exploring and defining this potentially large resource, which is ideally situated within 25 km of the coast with a hinterland that has the infrastructure to utilise any commercial quantities of gas that are proven, the area will be evaluated for carbon storage and there is a pathway to become part of the future hydrogen economy.
References
1. R. Boyd, J. Keene, T. Hubble, J. Gardner, K. Glenn, K. Ruming, N. Exon, and the crews of
Southern Surveyor 10/2006 and 12/2008; Southeast Australia: A Cenozoic Continental
Margin Dominated by Mass Transport,
2.G. Logan, A. Jones, et.al Australian Offshore natural Hydrocarbon Seepage studies, a review and re-evaluation>Geoscience Australia in Marine and Petroleum Geology Jan 2010
Pp 26-45
3. Boyd, R., Ruming, K., and Roberts, J., 2004, Geomorphology and surficial sediments of the southeast Australian continental margin, Australian Journal of Earth Sciences 51, pp 743-764
4. New South Wales-Deep Saline Aquifer Storage Potential /Geoscience Australia.Co2CRC
Research Report Patchett. A. and Langford.R. 2005 and The potential for geological sequestration of CO2in Australia: Preliminary findings and implications for new gas field development Bradshaw.J.; Bradshaw. B; AllinsonG; Rigg.A;Nguyen; 2002