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010708CleanCoalCollaborationWithChina - Invest Victoria

Green light for clean coal collaboration with China


1 July 2008

Victoria is on track to becoming the world leader in clean coal technology, with the Victorian Government giving the green light for construction to begin on a new $750 million power station in the Latrobe Valley.

The new plant, a collaboration between HRL, leading Chinese power station construction firm Harbin Power Engineering Company and the State and Federal Governments, is due to be operational by 2012/13 and will create 300 jobs during construction, with 36 ongoing jobs when the power station comes online.

The new technology, which will be used to dry the brown coal it burns, will significantly reduce carbon emissions and has the potential to ensure the future viability of the Latrobe Valley as a major contributor to Victoria’s energy demands.

“The $750 million HRL plant will use technology which has been developed right here in Victoria and is part of the new generation of clean coal power stations designed to slash greenhouse gas emissions,” Victorian Energy and Resources Minister, Peter Batchelor, said.

“The project uses a process called integrated and gasification combined cycle (IDGCC) which can reduce emissions of CO2 from brown coal-fired power generation by 30 per cent and reduce water consumption by 50 per cent, compared to current best practice for brown coal power generation in the Latrobe Valley.

“HRL figures suggest this technology could almost halve emissions from the Latrobe Valley if substituted for all coal-fired power generation in the Latrobe Valley and when coupled with other clean coal technology, such as carbon storage, could reduce CO2 emissions to near zero.

“The Brumby Government has committed $50 million for this project, which helped encourage a $100 million investment from the Federal Government last year,” Mr Batchelor said.

“The 400 megawatt plant is expected to generate enough electricity to power 500,000 homes and the technology has huge potential for ensuring the sustainable long term use of the vast coal resources in the Latrobe Valley.”

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