Minister welcomes plans for clean-coal power station

21/05/07
Energy Minister Francis Logan has welcomed today's announcement of plans to develop a $2billion clean-coal power station south of Perth.
Hydrogen Energy, a new company jointly owned by BP and Rio Tinto, today announced it would begin preliminary work on a coal-fired power station that could generate 500 megawatts of electricity - enough to power 500,000 homes.
But by using clean-coal technology, four million tonnes of carbon dioxide will be captured and stored underground each year, instead of being emitted into the atmosphere.
Subject to engineering and commercial studies, a final investment decision to develop the project is planned to be made in 2011. It would then take three years to build.
Mr Logan said the project had the potential to provide base-load electricity, but with very low greenhouse gas emissions.
"I understand this is the first time a project of this size and type has been considered anywhere in the world and, as such, will be unique to WA," he said.
"The Carpenter Government has agreed to grant an option on the preferred location for the project's onshore development site, adjacent to BP's Kwinana Refinery and Rio Tinto's HIsmelt plant."
The project involves the gasification of Collie coal to produce hydrogen and carbon dioxide. The hydrogen is used to fuel the power station, while 90 per cent of the carbon dioxide is captured and stored permanently in a deep underground geological formation in the offshore Perth Basin.
Mr Logan said the project would benefit from an emissions trading scheme, which is supported by the WA Government, because it would provide the project with a sustained, additional revenue stream due to its low emissions profile.
"This project has the potential to provide substantial benefits to WA and to the nation," he said.
"While the technology to be used is still being developed, there are obvious benefits to the Australian coal industry, to Australian energy security and to the national electricity industry.
"In addition, the global deployment of clean coal technologies such as this has the potential to secure a long-term future for the export of coal."
Minister's office - 9222 8950