coldry plant push

http://latrobevalley.yourguide.com.au/news/local/news/general/coldry-plant-push/1454543.aspx?storypage=0
Coldry plant push
BY NICOLE JACKSON
10/03/2009 8:25:00 AM

A COLDRY plant proposed for the Latrobe Valley could create more than 1000 jobs and assist a local power station to reduce its carbon emissions.
Australian company Environmental Clean Technologies (ECT) has signed a Heads of Agreement with Thang Long Investment and Commercial Joint Stock Company (TL) to build a coldry plant, preferably in the Latrobe Valley.

The companies are now attempting to secure a partnership with Loy Yang Power or TRUenergy Yallourn to utilise the brown coal from their mines for the proposed plant.

The coldry process is essentially coal drying, where brown coal is processed through a plant for water to be extracted from it.

The end product is `coldry pellets' which are also known as a substitute for black coal and according to ECT chief executive Kos Galtos, are burnt more efficiently than brown coal and emit less CO2 as a result.

ECT hopes to start building the plant in 2010 and have it completed within three years.

If established, the coldry plant will produce two million tonnes of coldry pellets per annum within three years, eventually reaching 20 million tonnes per annum by 2020.

Pellets produced at the proposed coldry plant will be exported, mostly to clients in southern China.

But Mr Galtos said there was also an opportunity for the power station which enters into the partnership to purchase the pellets at a significantly discounted rate to burn in their own plant.

He said this would be a ``big win'' for the power station and would support its long-term viability.

``If they replace just 10 per cent of their volume with coldry pellets they would decrease CO2 emissions by five per cent,'' Mr Galtos said.

``Should they decide they want to use the product, I am ready and willing to give them the best deal.''

He said the plant would use hot water from the chosen power station's cooling towers and then return it to them at a cooler temperature.

Water extracted from the brown coal in the coldry plant will also be sold, possibly to local power stations and local industry.

``Two tonnes of Latrobe Valley coal would deliver a tonne of dried pellets and 1000 litres of water,'' Mr Galtos said.

``The plant will produce 20 gigalitres of water per year at its full scale.''

The coldry station project would cost up to $6 billion to establish and would create jobs in the electrical, plumbing, construction, welding, maintenance and administration sectors, among others.

``Our plant will deliver jobs for younger people in the region, we are looking to employ local contractors and the intention is to be an active participant within the local community.''

Mr Galtos said the company had identified 1500 locations all over the world where coldry plants could be rolled out, creating international job opportunities for people trained at the Latrobe Valley plant.

He said developing a coldry plant in the Latrobe Valley would open the door to building more efficient power stations locally that would use the coal drying technology, or for existing power stations to convert to burning the pellets in place of brown coal.

``It's clear Victoria needs base load electricity and I think by being able to create an export business from a black coal substitute, we will be able to ease the transition to being more carbon efficient.''

In a written statement to The Express, a Loy Yang Power spokesman said discussions had been held with ECT regarding the development of a coal drying facility which could ``complement the future operation of the Loy Yang power station and contribute to a reduction in CO2 emissions''.

A TRUenergy Yallourn spokesman said the company ``continued to assess a range of technologies, including clean coal technologies.''