Victorian Deputy Premier Peter Ryan said the state was home to one of the world’s largest brown coal or lignite reserves and the joint investment would enable the development of smarter, cleaner and sustainable uses for the important resource.
“We have reached an important milestone today in announcing two successful advanced lignite demonstration program applicants, whose proposals will provide significant opportunities for communities in the Latrobe Valley and broader Gippsland region,” he said.
Coal Energy Australia has been granted $30 million for the development of a $143 million demonstration plant producing fertiliser, oil and high value coal used in steelmaking.
The project will entail building a pre-commercial lignite upgrading plant to process high-value metallurgical-grade carbon and other hydrocarbon products as well as integrating technologies for the pyrolysis of coal, based on coking, semiâ€coking and advanced heating technology.
It is hoped to lead to the production of three products: low volatile solid fuel or char – a substitute for pulverised coal injection coal in steel manufacture; pyrolysis oil, which can be distilled into various oils, including diesel oil for industrial heating and ammonium sulphate for use as a fertiliser or soil conditioner.
Ignite Energy Resources has been granted $20 million for the development of an $84.3 million pre-commercial plant producing upgraded coal products for local or export markets and synthetic oil, which can be refined into fuel sources such as diesel and petrol.
The project will entail building and operating a pre-commercial lignite upgrading and processing plant and utilising Ignite’s unique catalytic hydrothermal reactor technology, which rapidly converts lignite in a water slurry into an oily coal that can be separated into high energy products.
It is hoped to lead to the production of three products: oily coal, which can be separated into high energy products, synthetic crude (syncrude) and micronised upgraded coal for use in blast furnaces as PCI for steel manufacturing and synthetic crude oil.
Victorian Energy and Resources Minister Russell Northe said the state and federal governments had committed to the project two years ago and the funding announcement was a significant step towards the construction and operation of demonstration plants using coal sourced from existing licence holders in the Latrobe Valley.
“Brown coal has a long history of providing benefits to all Victorians, delivering reliable and affordable power and we believe it has a bright future helping build a better Victoria,” Northe said.
“The projects we are announcing today have the potential to bring significant employment and investment to the Latrobe Valley and to contribute to the economic growth of the area.”
The funding agreements are based on the achievement of stringent milestones that indicate positive progress of the overall project outcomes.
Federal Industry Minister Ian Macfarlane said Australia had a great opportunity to secure a sustainable future for Victoria’s brown coal reserves.
“This program is designed to accelerate the development of new technologies, which could drive new industries and make a significant economic contribution to the Latrobe Valley and the state,” Macfarlane said.
“The projects being announced today are about making progress toward clean solutions for capitalising on this rich resource and seeing a bright future for the Latrobe Valley and its community.”
