The Advanced Lignite Demonstration Program launched Friday by Resources and Energy Minister Martin Ferguson is expected to ensure growth opportunities for the region and a sustainable energy source for Victoria.

“The Gippsland region contains more than 20% of the world’s low rank coal reserves with an estimated economic life of about 490 years and it is important we look for improvements in the way we harness this valuable resource,” Ferguson said.

“There is also potential for brown coal to develop into a valuable export, which would not be possible without the technological innovation that may also assist in meeting the government’s emissions reductions targets of 5% fewer emissions than 2000 levels by 2020.”

Victorian Energy and Resources Minister Michael O’Brien said the funding was part of a drive to find new ways of developing Victoria’s massive brown coal resource.

“Our brown coal resource has for a long time benefited all Victorians, delivering a reliable and affordable power source that has underpinned our economic growth and been a competitive advantage for the state,” O’Brien said.

“There is a long-term viable future for the Latrobe Valley based on the sustainable use of brown coal.”

Technologies to be pursued by the new program include direct conversion, drying or dewatering of coal and conversion to higher value energy products.

Ministers Ferguson and O’Brien released the program application and guidelines and have called for expressions of interest which close on November 19.

Applications will be assessed by an independent assessment panel with shortlisted projects to be invited to submit a request for proposal in December 2012.

Funds will typically be provided over a four-year period, with the first funded projects scheduled to commence construction during the 2013-14 financial year.

Projects will need to demonstrate a commercial pathway from coal upgrading to utilisation through a range of conversion processes.

“I hope [the government partnership] will also become a partnership with industry – through participation in the demonstration phase and the widespread adoption of new low emission technologies it promotes,” Ferguson said.

“Technological development will be critical if this vision is ever to become a reality.”