ZEROGEN MARK II - WORLD’S 1ST CLEAN COAL POWER A STEP CLOSER: BLIGH

Queensland’s Zerogen project has taken a major step forward and by 2012 Queensland could be home to the world’s first clean coal power plant that safely captures and stores carbon dioxide, Premier Anna Bligh said today.

“Given positive feasibility and financing outcomes the new 2-staged configuration plant could be forerunner for a commercially based larger plant by 2017,” said the Premier.

“ZeroGen Mark II” – the result of a collaboration between the State Government and industry through the Clean Coal Council - is a new 2-staged configuration planned by Queensland-based ZeroGen Clean Coal Power Project.

“There’s no disputing the dangerous risks posed by climate change and the urgent need to reduce greenhouse gas emissions from coal-fired power generation.

“The time for action is now. We are talking about long-term security of the State’s biggest industry and success in this technology will have massive world-wide application.”

“The total cost of the feasibility study is about $125 million, of which the Queensland Government is contributing around $100 million.

“The Government’s Clean Coal Council partner - the Australian Coal Association – will meet the additional cost.”

“The reconfiguration has gained crucial support of the Australian Coal Association, the CFMEU, and WWF-Australia.

“The Mark II configuration plans to speed up delivery of clean coal technology at a commercial scale.

“Compared to the original project configuration, the new proposed Stage One involves plant with double the power output. If successful, it could bring forward installations of commercial clean coal technology based plant by several years.

“The technical and financial feasibility of Stage 1 will be assessed through ZeroGen undertaking a detailed feasibility study and business case and capital raising by 2009.

“However, feasibility is the basis for this project to proceed before the Federal Government and the private sector make their decision to invest.

“The project’s First Stage is to develop a coal gasification power plant near Rockhampton that safely captures and stores carbon dioxide by 2012.

“That’s a big step forward in reducing greenhouse gas emissions from coal and a big step forward for Queensland in its fight against climate change.

“This will be the first demonstration clean coal power plant of its kind in the world and will generate the relevant knowledge and experience to guide the development of a large-scale plant in Stage Two of the project.

“The project’s second stage commercial-scale plant will be capable of capturing up to 90 percent of carbon dioxide emissions, thereby contributing to the Government’s commitment to reducing emissions and securing a long-term future for coal.

Stage One of the ZeroGen project involves an 80 megawatt net coal gasification demonstration plant located near Rockhampton in Central Queensland.

Construction of the coal gasification power plant in Stage One is expected to create up to 700 jobs, and the operation of the plant will create up to 100 jobs.

The proposed new plant will demonstrate capture of up to 75 percent of carbon dioxide emissions and also demonstrate underground storage capability. Carbon dioxide will be trucked to identified geological storage sites.

Planning for Stage Two of the proposed project will occur concurrently with Stage One. Stage Two will involve deployment of a commercial 300 megawatt net coal gasification plant with carbon capture and storage facilities.

Important pre-feasibility studies will investigate the potential locations of the commercial scale project in Queensland.

“The project’s reconfiguration involving the commercial-scale plant will see ZeroGen play a bigger role in underpinning the future value of Queensland’s coal industry.

The ZeroGen project’s development of a commercial-scale clean coal power plant is now better aligned with the coal industry’s intentions of making significant improvements to the environmental performance of coal before 2020.

“ZeroGen will help ensure that coal continues to play an important role in providing secure, affordable baseload electricity and will place Queensland at the forefront of global efforts to achieve the commercial deployment of clean coal.

“The design, construction and operation of both stages of the project will build specialist Queensland skills and expertise in clean coal which will be of international value given the global skills shortage in the technology.

“ZeroGen was initiated by the Queensland Government. However, there is a need for other substantial funding contributors.

“Along with the partnership between the Queensland Government and the coal industry, Shell is a strong supporter of the project. Other potential financial participants to be approached include the Federal Government and private equity investors,” said Ms Bligh.

Media contact: Premier ‘s Office 3224 4500