Brown coal in the dock – where to for Victoria now?
Date
November 18, 2015 - 8:24PM
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http://www.theage.com.au/victoria/brown-coal-in-the-dock--where-to-for-victoria-now-20151118-gl2492.html#ixzz3rpvIw0fd
Shanghai Electric Australia planned to build a $119 million demonstration plant in Victoria but the project has been shelved.
•Australia backs down on coal stand-off
•Chinese company gets $25m for Latrobe Valley brown coal project
An "advanced coal" project planned for the Latrobe Valley has been withdrawn, with future use of Victoria's massive brown coal reserves under the microscope.
Shanghai Electric Australia, a multibillion-dollar Chinese firm, was to build a $119 million demonstration plant in Victoria to process coal into briquettes and the project has now been shelved.
The project was to receive $25 million in state and federal funding but the state government said on Wednesday no government money was paid because the company failed to reach the first milestone of attracting private investment.
Two other brown coal projects under the Advanced Lignite Demonstration Program are proceeding.
Coal Energy Australia has been granted $30 million for the development of a $143 million demonstration plant producing fertiliser, oil and high-value coal used in steelmaking.
And Ignite Energy Resources has been granted $20 million for the development of an $84.3 million pre-commercial plant producing upgraded coal products for local or export markets, and synthetic oil which can be refined into fuel sources such as diesel and petrol.
The withdrawal of the Shanghai Electric Australia project comes as the Andrews government announces a review of "previous government programs for coal development" and promises to release a new coal policy next year.
"The coal policy will be released in 2016 in order to incorporate findings from this review, the government's climate change review and the Hazelwood Mine Fire Inquiry recommendations," a statement from Industry Minister Lily D'Ambrosio said.
She said "major energy companies, including AGL, GDF Suez and Origin Energy have already announced they will be investing in new coal fired power stations".
Opposition resources spokesman David Southwick said "the real question here is whether this is just a plan by Daniel Andrews to shut down Victoria's coal industry".
"We support a mixture of energy sources, including renewables and coal, but Daniel Andrews must explain if he is trying to pull the plug on Victoria's cheaper energy resource and the thousands of jobs it supports," Mr Southwick said.
Nicholas Aberle from Environment Victoria welcomed the coal policy review, as did Megan Davison, Executive Director of Minerals Council of Australia - Victorian Division.
"Time after time, governments have clung to hopes of doing more with coal, at the expense of investment in other industries in the region. With the withdrawal of the Shanghai Electric project, we expect that the $25 million of public money will now be reserved for projects that don't just see the Latrobe Valley with quarry vision," Mr Aberle said.
Ms Davison said: "It is pleasing that the Andrews government is now looking to develop a new coal policy to consider the economic, social and environmental factors of future brown. This ... initiative will give both the industry and the people of the Latrobe Valley certainty about the future of brown coal in Victoria."
Shanghai Electric Australia were approached for comment.
http://www.theage.com.au/victoria/b...here-to-for-victoria-now-20151118-gl2492.html
