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A$50m govt funding for Latrobe Valley coal projects

A$50m govt funding for Latrobe Valley coal projects

Photo by Bloomberg

16th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The commonwealth and Victoria governments have jointly earmarked A$50-million for two advanced coal projects in the Latrobe Valley.

A$30-million would be given to unlisted Coal Energy Australia to develop a A$143-million demonstration plant producing fertiliser, oil and high value coal.

The project would entail the construction of a pre-commercial lignite upgrading plant to process high-value metallurgical-grade carbon and other hydrocarbon products into three products, namely char, pyrolysis oil and ammonium sulphide.

The remaining A$20-million funding would be granted to Ignite Energy Resources to develop an A$84.3-million pilot plant producing upgraded coal products for domestic and export markets, as well as synthetic oil that can be refined into diesel and petrol.

Victorian Deputy Premier Peter Ryan said on Friday that the state was home to one of the world’s largest brown coal reserves and this joint investment would enable the development of new, smarter, cleaner and sustainable uses for this important resource.

“We have reached an important milestone today in announcing two successful Advanced Lignite Demonstration Programme (ALDP) applicants, whose proposals will provide significant opportunities for communities in the Latrobe Valley and broader Gippsland region.”

The ALDP was earmarked for investment some two years ago.

Federal Industry Minister Ian Macfarlane said Australia had an opportunity to secure a sustainable future for Victoria’s brown coal reserves.

“This programme is designed to accelerate the development of new technologies, which could drive new industries and make a significant economic contribution to the Latrobe Valley and the state,” Macfarlane said.

“The projects being announced are about making progress toward clean solutions for capitalising on this rich resource and seeing a bright future for the Latrobe Valley and its community.”

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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