Media Release: LATROBE VALLEY CO2 CAPTURE AN AUSTRALIAN FIRST

FROM THE MINISTER FOR ENERGY AND RESOURCES

DATE: Wednesday, July 9, 2008

LATROBE VALLEY CO2 CAPTURE AN AUSTRALIAN FIRST

CO2 has been captured in the Latrobe Valley from coal fired electricity generation for the first time in Australia, providing a significant breakthrough in the development of carbon capture technology.

Speaking at the 2008 Gippsland Energy Summit at Churchill, Energy & Resources Minister Peter Batchelor said the important milestone in testing carbon capture technology has the potential to substantially reduce greenhouse gas emissions from coal fired electricity generation.

“The Brumby Government is taking action on climate change and this project is a great example of what can be achieved when industry, government and research organisations work together,” Mr Batchelor said.

“The CO2 has been captured through the CSIRO research stream of the Latrobe Valley Post Combustion Capture Project, which is operating at Loy Yang Power and is capable of capturing up to 1000 tonnes of CO2 per year. The second research stream for the project, with the CO2CRC, will be installed at International Power, Hazelwood, later this year.

“The technology being used at Loy Yang is portable, so it can literally be put on the back of a truck and transported to another power station.

“This means the system, if it proves successful, can be easily transferred to other power stations to refine the technology to the individual power station’s needs, before it is permanently put in place.

“The Brumby Government provided $2.5 million for this project last year under the Energy Technology Innovation Strategy to help accelerate the development of this technology.

“Carbon Capture and Storage (CCS) technology is recognised around the world as a way of potentially making deep cuts to greenhouse gas emissions.

“Collaborative research projects such as the Latrobe Valley Post Combustion Capture Project are vital to ensure CCS technology is fully developed and tested, so we can capitalise on this emerging sector.”

Mr Batchelor said the Latrobe Valley Post Combustion Capture Project uses technology which separates carbon dioxide from power plant flue gas, so it is then ready to be stored deep underground.

Member for Eastern Victoria Matt Viney MLC said that the development was great news for the environment and for the future of the energy industry in the Latrobe Valley.

“Victoria has vast brown coal resources in the Latrobe Valley which provide reliable and affordable electricity generation, but to continue utilising this resource, we must reduce the amount of greenhouse gas emissions produced from coal fired electricity generation,” Mr Viney said.

“With projects like this the Brumby Government is helping to position Victoria – with the Latrobe Valley at its heart – as a global leader in CCS technology, which will provide major benefits for both the environment and our economy.”

The $5.6 million Latrobe Valley Post Combustion Capture Project is a joint collaboration between Loy Yang Power, International Power Hazelwood, the Victorian Government and researchers from the CO2CRC and the CSIRO.