Victorian Minister for Energy and Resources Russell Northe said Victoria had an opportunity to capitalise on these R&D projects because the state had abundant reserves of brown coal that could be utilised by a sustainable coal industry.

“That is why the Victorian government is supporting and investing in projects that can deliver real outcomes for innovating the industry, creating jobs and delivering a sustainable energy source for future demand,” Northe said.

BCIA CEO Phil Gurney said: “Our 2013-14 R&D funding round demonstrates there is substantial international and domestic commercial interest in securing a sustainable future for Victoria’s vast and unique brown coal resource; one of the largest and lowest-cost lignite coal resources to be found anywhere in the world.

“The latest report from the Intergovernmental Panel on Climate Change (IPCC) acknowledges the urgent need for low-emission energy technologies – including fossil fuel plants equipped with carbon capture and storage (CCS) – and highlights the critical role that CCS must play in mitigating the impacts of global warming.

“The projects we are announcing today will accelerate efforts to deliver sustainable energy from brown coal by reducing carbon emissions from coal-fired power and cutting the cost of carbon capture technologies.

“The involvement in our research program of significant international and local industry players not only shows a recognition of the world-class research being undertaken in Australia, but will also enable the innovative technologies developed here to be commercially adopted as quickly as possible.

“The commercial success of such technologies would secure Victoria’s - and indeed Australia’s - future economic prosperity by enabling the continuation of low cost power generation while also creating valuable new industries and employment opportunities in the state’s Latrobe Valley.”

BCIA awarded $2.45 million in R&D funding for the five R&D projects selected and announced today as part of the company’s 2013-14 competitive funding round for low emissions brown coal power generation technologies.

When the current funding round allocation is finalised, the leveraged value of BCIA’s new portfolio of low emissions R&D projects will total nearly $12 million including research institute, industry, and state and Commonwealth government (via Australian National Low Emissions Coal R&D) contributions.

BCIA was awarded $1 million in funding for a CSIRO project that plans to trial high-efficiency power generation using Victorian brown coal processed into a water-based slurry and directly injected into a large adapted diesel engine.

The Direct Injection Carbon Engine (DICE) project is targeting a step-change in fuel cycle efficiency enabling a 50% reduction in CO2 emissions intensity compared with Victoria’s existing brown coal-fired power plants.