more aldp clues, page-6

The Commonwealth Govt position on the BC Pilbara:

http://minister.ret.gov.au/MediaCentre/Speeches/Pages/JointAnnouncementLigniteProject.aspx

Based on this kind of political will the eventual monetisation of Victorian BC looks inevitable. A few brown coal upgrade techs will win, but the great majority will vanish without trace within the next few years as market forces efficiently sifts the wheat from the chaff.

But throughout this technology war MNM's 1000 sq km of A-grade Victorian brown coal will sit patiently, just like it has for the last 5 million odd years.

The Asian Century's demand for cleaner coal powered electricity makes that multi billion tonne fuel resource better than money in the bank IMO.

'Joint Announcement of the Advanced Lignite Development Project
03 August 2012
Powerworks
Morwell, Victoria

* Check against delivery

Introduction
Good morning.

Thank you to Minister O’Brien for his comments.

The new $90 million Advanced Lignite Demonstration Program is a true partnership between the Australian and Victorian Governments, with each providing $45 million.

I hope it will also quickly become a partnership with industry – through participation in the demonstration phase and the widespread adoption of new low emission technologies it promotes.

The program recognises the immense economic and employment contributions of lignite, or brown coal, to Victoria and the Latrobe Valley.

This resource has provided for the vast majority of the state’s electricity generation since the 1920s, with its low cost energy a key competitive advantage for Victorian industries.

The new program also recognises we need to find ways to counter the significant carbon emissions from the combustion of brown coal, if we are to secure its place in Australia’s clean energy future.

New program

To achieve this, the Australian and Victorian Governments have developed a program that will fund development and deployment of emerging technologies.

We also expect these technologies to improve economic return from lignite and provide future sustainable employment opportunities in the Gippsland region.

After all it is a huge resource, equivalent to more than 20 per cent of the world’s low rank coal reserves, and with an estimated economic life of about 490 years it is important we look for improvements in the way we harness this valuable resource

The potential for further economic development using this resource is massive and recognised internationally.

Earlier this year I spoke of the potential opportunity to transform the region into a major new resources export province.

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

That is why both the Australian and Victorian Government have joined forces to put in place a program that will support between two and four low emission coal demonstration projects.

The program seeks to develop more efficient, less emissions-intensive upgrading coal technologies and processes, including direct conversion, drying and dewatering.

Projects will need to demonstrate a commercial pathway from upgrading to utilisation of coal through processes including densification, combustion and gasification.

These technologies will be critical to informing the design of next generation power plants, which are expected to provide 30 per cent reductions in carbon emissions.

Only a small percentage of Victoria’s brown coal is now upgraded, using 1950’s technology that dries and compresses it into briquettes for industrial customers.

With advances in modern technology, there is significant potential to investigate more sophisticated ways to efficiently upgrade brown coal.

These advances are what a carbon price is intended to drive improvements in the way we use our resources to enhance their environmental sustainability and economic value.

This is what will drive economic activity and jobs growth in the Latrobe Valley.

And with it the opportunity for the Latrobe Valley to be at the forefront of advanced lignite development.

As the Australian Energy Technology Assessment released earlier this week highlights, there are many prospective low emission coal technologies moving down the cost curve.

That is why I am very pleased today, to stand here with the Victorian Government to demonstrate to this region that both Governments are here to support you through the transition to a low carbon economy.

I want to thank both my department and the Victorian Department of Primary Industries for all the work that has gone into developing this program and I encourage you to continue this cooperation going forward.

Clean energy commitments

Over the past six months alone, the Australian Government has announced a number of energy-related initiatives here in the Latrobe Valley – a feat achieved through ongoing cooperation with the local Council, community and businesses.

This new venture today is part of the $370 million National Low Emissions Coal Initiative – and has been designed specifically for this region and projects are expected to commence construction during the 2013-14 financial year.

This follows on from the announcement Minister O’Brien and I made here in the Latrobe Valley in February this year towards the development of Victoria’s first carbon capture and storage (CCS) project - CarbonNet.

Our combined funding of $100 million is supporting the feasibility work of this potential $1 billion plus CCS project which is progressing well.

CCS is a critical technology if we are to reduce global greenhouse gas emissions and retrofit to existing power stations.

This is acknowledged by the IEA who forecast that it will be necessary to provide one-fifth of the worlds required abatement by 2035 to limit global average temperature increases to two per cent.

In late June, I also announced that the Australian Government would be providing a $50 million restructure package to Energy Brix to ensure its customers have access to a continued supply of briquettes while they transition to cleaner fuel sources.

Many regional businesses rely on briquettes from abattoirs, char producers, food processors, dairy processing plants and generators employing more than 2500 people throughout regional communities.

This is a clear example of the Australian Government’s commitment to supporting communities as we all transition to a Clean Energy Future.

Perhaps in the future we may see a project developed out of the Advanced Lignite Demonstration Program that could provide a low emissions alternative fuel source to these businesses.

Importantly, the restructuring package ensures Energy Brix is better equipped to meet its obligations with respect to site rehabilitation and employee entitlements.

Also of relevance to the Latrobe Valley is the announcement of an extension to the Government’s Contract for Closure negotiations.

The generators participating in these negotiations have done so in good faith and it is my intention that we reach an outcome in the coming months, as I recognise the importance of resolving this uncertainty as quickly as possible.

And just last week, I announced the Australian Government will not proceed with funding the Dual Gas Project after operator HRL did not meet the required conditions set out in the funding deed.

While I acknowledge this may come as a disappointment to some, I am confident that the program we have announced today will see new projects get off the ground.

If we have learnt anything through grant based programs it is that it is best to target smaller projects and increase funding support, where warranted, over time.

Conclusion

The new $90 million partnership between the Australian and Victorian Governments I have announced today will help ensure we continue making the most of this resource.

Coupled with other state and national commitments, it will help see brown coal play an expanded role in generating local jobs and economic growth.

I would like to thank all of those involved in the program’s development and call on industry to get behind the program and ensure its success.

Thank you.'