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01/09/09

Bligh Government nominates projects for Commonwealth's CCS Flagship Program

The Bligh Government is seeking Commonwealth funding to support significant low emission coal technology and carbon storage projects underway in Queensland.

Natural Resources, Mines and Energy Minister Stephen Robertson said the government has nominated two Queensland projects for funding under the Commonwealth's $2 billion Carbon Capture and Storage (CCS) Flagships Program.

"Low emission coal technologies and CCS will be critical to ensuring sustainable electricity supplies and a clean energy future for Queensland," he said.

"The Bligh Government is already making a significant investment in accelerating the development and deployment of low emission coal technologies and CCS to achieve deep cuts in greenhouse gas emissions from the energy sector.

"And no new coal-fired power station will be approved in Queensland unless it uses world's best practice low emission technology and is CCS ready.

"This approach makes Queensland ideally placed to host industrial-scale demonstration projects under the CCS Flagships program."

Mr Robertson said Queensland projects nominated for funding are:

"We have nominated two IGCC-CCS power station projects as options for funding under the first category: the 400 megawatt ZeroGen proposal, which is being developed in conjunction with Mitsubishi Heavy Industries, and the 334 megawatt Wandoan proposal by GE Energy and Xstrata.

"The second component of Queensland's nomination focuses on accelerating the assessment of carbon storage opportunities in priority basins like the Surat, Bowen and Eromanga basins.

"This work will build upon the Bligh Government's existing $30 million Carbon Geostorage Initiative being conducted in partnership with the Australian coal industry.

"And it will facilitate the necessary private sector investment and early development of multi-user storage hubs for carbon storage.

"Together, low emission coal technologies and CCS have the potential to significantly reduce the level of carbon dioxide emissions from coal-fired power stations.

"That is why the government is working with industry to develop and demonstrate innovative low emission coal and CCS technologies through projects like ZeroGen, Wandoan, the Callide Oxyfuel project and Tarong Energy's post-combustion capture project."

Mr Robertson said the government established the Queensland Clean Coal Council in 2007 to facilitate the development and commercial deployment of low emission coal technologies before 2020.

"We have also committed in principle around $900 million to support low emission coal demonstration projects.

"The Bligh Government's energy and commitment to this initiative is now leading to increasing interest from other key stakeholders who are keen to see the long term sustainability of the coal industry and the development of viable low emissions coal technology," he said.

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Last Updated 03 November 2009