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Initial funding of $120 million will be spent on prefeasibility work across the GE Energy-led Wandoan integrated gasification combined-cycle power plant in Queensland, the Queensland government-owned Zerogen power plant near Gladstone, the CarbonNet project in Victoria's Latrobe Valley and the Collie South West Hub project in Western Australia.
The proposed Wandoan project will generate 334MW equivalent net after 90% carbon dioxide capture and will store up to 2.5 million tonnes of carbon dioxide per annum.
Xstrata Coal is part of the Wandoan alliance for the carbon transportation and storage component of the project and plans to feed the plant from its proposed Wandoan mine.
“This is a significant first step to position Australia as a key contributor towards achieving the G8’s goal of establishing 20 CCS projects globally by 2020,” Xstrata Coal Peter Freyberg said.
The Australian government plans to spend $2 billion over nine years to support CCS.
