**Check against delivery
Ladies and gentlemen, it is a privilege to be here today and to represent the Prime Minister, who has duties elsewhere and regrets he cannot attend.
However, I can assure you that he sees enormous significance in the Callide Oxyfuel project.
As do I.
Let there be no doubt: this is a momentous occasion.
Today we lay the foundation stone for the widespread deployment of low emissions coal technology so essential for Australian power generation and for the millions of people across the world relying on Australian coal.
As you are all aware - this is the first project of its type anywhere in the world and governments and industry across the globe are keenly awaiting its results.
Carbon capture and storage is an important plank in the Government's strategy to increase energy security while reducing our carbon emissions.
Which is why the Australian Government has committed $50 million to this project.
Coal provides around 80% of Australia's total electricity, but it also accounts for 32% of Australia's total CO2 emissions.
Clearly - no serious response to climate change can ignore the need to reduce emissions from coal.
Australia is the world's largest exporter of coal and coal is Australia's biggest export. Its sustainability directly impacts Australia's economic prosperity, as well as the world's environment and energy supply.
Despite the growth of renewable energy, coal will remain a major source of the world's energy in the coming decades.
In fact - the International Energy Agency expects that by 2030, coal will provide even more of the world's electricity than it does today.
Consider this:
- Australia's entire grid-connected coal-fired power capacity is around 30,000MW.
- China is presently adding new coal-fired generation at a rate of 80,000MW pa.
- This means that in China alone - the equivalent of Australia's entire coal generation capacity is being brought online every 19 weeks.
- Last month the Prime Minister announced the establishment of a new Global Carbon Capture and Storage Institute, to be headquartered in Australia.
The Australian Government has committed $100 million per annum in funding.
The Global CCS Institute will focus on accelerating 20 flagship projects.
A delegation from my Department has consulted senior government officials, industry, and research and non government organisations, throughout Asia, Europe, the Americas and Oceania.
I have to say the reaction around the world has been overwhelmingly positive.
Of course - The success of the Global Initiative will build on the success of the domestic coal structures we have put in place under the National Low Emissions Coal Initiative.
We have created a Low Emission Coal Council and a Carbon Storage Taskforce.
We have brought together the coal industry, the research community, unions, environmental advocacy groups, and governments - so as to develop a national strategy for a sustainable coal sector.
Supported by the world's most comprehensive legislative regime to allow commercial storage of CO2 in offshore areas, Australia is well positioned to continue our leadership role in this area.
But the fact is that there is no one-size-fits-all solution to addressing the challenge of climate change, which is why we are pursuing a variety of options across energy platforms.
The Australian Government does not see the low emissions coal and renewable technologies as competing alternatives.
We are committed to accelerating progress in renewable energy development.
And we are doing this through a number of important mechanisms:
- We are committed to ensuring 20 per cent of Australia's electricity supply will be generated from renewable sources by 2020
- As you are no doubt aware - we are developing a Carbon Pollution Reduction Scheme
- And I am very pleased to say that the 2008 Budget outlined record levels of Commonwealth funding for renewable energy - via the $500million Renewable Energy Fund and the $150 million Energy Innovation Fund.
But perhaps most importantly - projects such as the one we are celebrating today illustrate we have the capacity to respond to challenges - to come up with solutions that are good for the economy and good for the environment.
As you can see, the potential for deployment of this technology - and its role in securing coal's future as an energy source - is extraordinary.
Which is why the Australian Government is proud to provide $50 million to support the project.
We are proud to make this investment in the coal industry and in energy security - a cause close to my heart as Minister for Resources and Energy.
I must also recognise the support of the Queensland Government and the Australian Coal Association, which are also major financial supporters of this project.
But most pleasing is the support of the Japanese consortium comprising Mitsui, JPower, IHI and JCoal.
To have the support of one our biggest, long-term customers is a huge vote of confidence in the Australian coal industry.
It is projects like this which will provide a future for coal in Australia and will ensure those working within the coal industry have job security.