My understanding is that $50 million is to build an above ground gasification plant by CLET (a QLD government initiative). You can learn more about CLET here:
http://www.clet.net/about/about.html
The two paragraphs below are what LNC will be bidding for and we all know how bullish Martin Ferguson is on CTL. We also know he is fully informed of what LNC is doing.
“The Government is also understood to have plans to offer a competitive grants program similar to the LETDF of up to $140million.
The programs fall under the control of Resources and Energy Minister Martin Ferguson. He said last night he could not comment on budget speculation but backed the Government's commitment to help develop the technology, given that 83 per cent of Australia's electricity was generated from coal.”
Although nothing was specifically mentioned in the budget, only $310 million of the $500 million budgeted has been allocated. I am sure that the government will provide funding for a production facility once LNC gets the demo plant up and running.
From the budget:
The Government will provide $500.0 million over eight years (including $119.4 million from 2012 13 to 2014 15) to support clean coal and advanced fossil fuel technology development through a National Clean Coal Fund. Initiatives to be supported through the fund include: • $50.0 million for a national carbon mapping and infrastructure plan; • $75.0 million for a National Clean Coal Research Program; • $50.0 million for a pilot coal gasification plant in Queensland; • $50.0 million to demonstrate carbon capture and storage; • $50.0 million for a large scale post combustion capture plant in the Latrobe Valley in Victoria; • $15.0 million to fund Australia's involvement in the FutureGen Alliance; and • $20.0 million for the Australia China Clean Coal Co ordination Group.
LNC Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
