Cleaner energy projects share in up to $29 million

Five projects that have the potential to make significant cuts to greenhouse gas emissions created from Victoria's power industry will share in up to $29 million of Brumby Labor Government funding, Energy and Resources Minister Peter Batchelor announced yesterday.

At Loy Yang Power in Gippsland, Mr Batchelor said the funding would assist selected companies progress world-leading technologies to use brown coal in a carbon-constrained future.

"A strong environment is crucial to our future and that's why we are continuing to support the energy industry to cut greenhouse gas emissions and find cleaner ways to produce electricity," Mr Batchelor said.

"We are not waiting for an Emission Trading Scheme to be supported by the Liberal Opposition or the Greens in Canberra. We are taking action now to address these challenges.

"We are committed to making Victoria a leader in clean energy technologies."

The funding includes:

$19 million towards the development of a multi-user carbon dioxide (CO2) storage and transport system. This is being developed by a consortium of Carbon Store Australia, TRUenergy and Mitsubishi Corporation;

Up to $3.5 million to investigate the feasibility of building a small-scale plant at an existing brown coal power station that would capture and mineralise CO2 into materials to be used in the building industry. The project is being developed by Calera;

Up to $2 million to investigate the feasibility of a large-scale, gasification, pre-combustion CO2 capture project being developed by TRUenergy and Southern Company;

Up to $3.5 million to investigate the feasibility of a gasification, pre-combustion CO2 capture project being developed by HRL; and

Up to $1 million to investigate the feasibility of a retro-fitted large-scale, post-combustion carbon capture plant at Loy Yang A Power Station being developed by Loy Yang Power, Mitsubishi and TRUenergy.

Mr Batchelor said the projects were the first to receive money from the Brumby Labor Government's $110 million Energy Technology Innovation Strategy (ETIS) fund for new large-scale, pre-commercial Carbon Capture Storage (CCS) demonstration projects in Victoria.

"These projects are based in the Latrobe Valley and are about finding ways to use Victoria's brown coal resource in a cleaner way," Mr Batchelor said.

"Much of this initial funding is for pre-feasibility studies, with the remaining money in the $110 million fund to be allocated to projects that successfully meet expectations.

"The projects are varied and highlight that there is no one solution to climate change. The development of CCS is a long process and that's why we taking action now.

"As we continue to cut greenhouse emissions, it's important to look at a variety of ways to make our environment cleaner."


Mr Batchelor said many of the projects would be part of the Victorian Government's CarbonNet initiative, for which the Commonwealth has approved funding for pre-feasibility work .

"Under CarbonNet, our vision is to coordinate Australia's first carbon capture, transport and storage network. It involves the development of a series of pipelines from high emitters to geological carbon storage sites in proven offshore and onshore areas in Victoria," he said.

CarbonNet is one of four short-listed projects to be funded for pre-feasibility studies under the Commonwealth Government's CCS Flagships Program.

Mr Batchelor said CCS was still in the early stages of development but the promising results of CCS trials in the Otway Basin in south-west Victoria and preliminary research undertaken to identify geological areas with storage potential show Victoria has significant CCS potential.

"We want to build on the lessons from these projects and foster further investment in the development of this technology, which has the potential to significantly reduce carbon pollution from coal-fired electricity generation," he said.



Tags: Source: Victorian Government News