If the application is successful, the mining licence would give Monash Energy exclusive rights to coal in the area and therefore greater security for the investors in a prospective project to convert coal to diesel.
The mining exemption signals the first move from exploration to development under the 2002 Brown Coal Tender. The tender was aimed at facilitating the development of clean coal technology to produce power and coal-based products such as transport fuels.
Energy Industries and Resources Minister Theo Theophanous today said the exemptions marked a major milestone in Victoria’s drive for clean coal technology.
“The Bracks Government is keen to secure the economic future of the Latrobe Valley’s energy resources in an environmentally responsible way,” Theophanous said.
He said this project would eventually use carbon capture and permanent geological storage of resultant CO2 emissions.
“But before a commercial plant can even be considered, the financial and technological viability must be proved in a demonstration phase, with some years of pre-feasibility work,” Theophanous said.
“While this project offers great potential for commercialisation of clean coal technology, including brown coal drying, gasification and geosequestration, this is an early step in a long process.
“While the Federal Government is busy investigating nuclear power, the Bracks Government is moving ahead with carbon capture and storage to reduce greenhouse gas emissions while generating electricity from our massive coal reserves in the Latrobe Valley.”
