ucg gets the green light, page-3

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Media Centre

18/02/09
Bligh Government gives green light to thousands of jobs

Minister for Mines and Energy Geoff Wilson has given the go ahead for two competing industries to tap into Queensland's rich coalfields in a move that will create thousands of jobs across the state.

Minister Wilson said State Cabinet had approved trials - near Chinchilla and Kingaroy in southern Queensland - of underground coal gasification, a potential new energy source.

"We've come up with a solution that gives certainty to industry in tough times. This is about creating jobs and keeping the economy going," Mr Wilson said.

"Two industries will benefit from our decision, but the ultimate beneficiaries will be Queensland's environment and our economy. This will generate thousands of jobs for workers around the state," he said.

The State Government's decision will pave the way for the joint development of coal seam gas - a multi-billion dollar industry - and trials of underground coal gasification.

"Coal seam gas is powering ahead in Queensland. It's a multi-billion dollar industry. Its success is due in no small part to our world-leading gas scheme which requires big electricity companies to source at least 13% of their energy from gas-fired generation. We're increasing it to 18% by 2020.

"Gas is a vital path to a cleaner energy future. It has half the emissions of coal-fired power and it's in abundance in the Surat Basin which is set to rival the Bowen Basin as the state's economic powerhouse.

"Our gas scheme is an investment in people who live and work in cities and towns like Gladstone, Miles, Chinchilla and Dalby. It's an investment in their future," Mr Wilson said.

Coal seam gas converts into liquefied natural gas or LNG.

There are seven LNG export projects being considered by the State Government.

Cabinet's decision to progress thousands of hectares of gas acreage towards tenure approval will give certainty to the LNG projects.

"When these projects are up and running, they will inject billions of dollars into Queensland's economy and lead to around 1750 jobs on site, and up to 4,000 jobs during construction stages."

Mr Wilson said three pilot projects would also be able to tap into Queensland's rich coal resources.

"These pilots plan to convert coal seams into a synthetic gas for power generation, industrial heating, diesel fuel and ammonia," Mr Wilson said.

"Underground coal gasification is an emerging technology that's largely untested in Australia. We're going to allow trials under strict monitoring conditions.

"They will have to meet the most stringent environmental standards," he said.

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Last Updated 18 February 2009