The Australian resources ministry says the fund is a step towards deepening the cooperation between the two countries in advancing post-combustion capture, oxy-fuel combustion and gasification technologies.

The fund is an initiative of the Australia-China joint coordination group on clean coal technology which is supported by $20 million in Australian government funding.

Resources and Energy Minister Martin Ferguson said a partnership between two of the world’s largest fossil fuel players was critical to reducing carbon emissions as the coal industry expanded.

“This is important because the International Energy Agency estimates that demand for coal will continue to grow by nearly two-thirds to 2035 based on current trends,” he said.

“Given Australia is the largest coal exporter in the world and China comprises half of global coal consumption, it is vital that we work together to develop technologies that can reduce greenhouse gas emissions associated with coal.

“The IEA recognises that carbon capture and storage is a necessary technology in order to limit global average temperature increases to two degrees and forecasts that it will provide one-fifth of the required abatement by 2035.”

The partnership fund is expected to focus on strengthening Australia and China collaborative ties by offering research and industry organisations support to provide exchanges, secondments, workshops and symposia in the field of low-emission coal technology.

The Australian Academy of Technological Sciences and Engineering will manage the fund.

The academy has invited Australian and Chinese research and industry representatives to apply for funding to support collaborative low-emission coal initiatives.