The Federal Minister for Resources and Energy, Martin Ferguson AM MP today announced the Australian Government will contribute additional funding of up to $40 million toward the Calera mineral carbonation project if feasibility studies and a pilot plant prove successful.
The funding, from the National Low Emissions Coal Initiative, is part of the Australian Government's 2007 election commitment to invest in post combustion capture and storage on an existing power station in the Latrobe Valley.
The Federal Minister for Resources and Energy, Martin Ferguson AM MP, speaking at an international symposium on sustainable low rank coals, said the Australian and Victorian Governments were already providing an initial $3.5 million each for the Calera project.
Calera itself will also provide funding in excess of $3.5 million.
Minister Ferguson said the Calera project involved an innovative technology that uses CO2 captured from the Yallourn power station to make cement and aggregate material.
"This technology converts, rather than stores, CO2 to make solid calcium and magnesium carbonate and bicarbonate minerals that can be used as valuable building materials.
"The real significance of this project is its potential to demonstrate carbon capture and use rather than carbon capture and storage.
"This is a concept the community has long been asking about.
"While geological storage will be required as part of the long term solution to disposing of large quantities of CO2, carbon capture and use projects will also be important and will help power stations and other industries offset the cost of installing capture technology.
"Along with its carbon capture and use benefits, this project would also produce fresh water from saline wastewater from the power station, providing potential re-use opportunities in the Latrobe Valley and reducing both ash and wastewater volumes.
"Should these studies and the pilot plant indicate the construction of a demonstration plant would be technically and commercially feasible, the Australian Government will contribute additional funding of up to $40 million toward the project.
"The Calera project is very exciting and will allow us to test the world's first carbonation process on brown coal to produce useful building materials and reduce CO2 emissions from an existing coal-fired power station at the same time," Minister Ferguson said.
Welcoming the announcement, Victorian Energy and Resources Minister Peter Batchelor said the funding demonstrated both governments' commitment to reducing greenhouse gas emissions.
"This project is about finding cleaner ways to use the Latrobe Valley's brown coal resource," Minister Batchelor said.
"Making low emissions coal technologies viable and sustainable ensures Australia's energy security, viability and competitiveness are maintained in a more environmentally sustainable way."
Calera will use ash and ash wastewater from coal combustion as part of the process. Currently the wastewater is stored and treated biologically in ponds at Dutson Downs prior to being piped to the ocean. The ash is buried in landfill close to the mine. It is expected that both the wastewater going to the ocean and the ash going to landfill will reduce significantly as a result of this technology.