The new power station, to be built in Victoria’s Latrobe Valley, is expected to be operational by 2012/13. It will use new technology to dry and gasify the coal to significantly reduce carbon dioxide emissions, and will demonstrate the viability of a new process which has the potential to cut greenhouse gas emissions in other future power stations in Victoria and around the world.

Mr Batchelor said the Brumby Government is taking action to protect our environment and taking up the climate challenge.

“The $750 million HRL plant will use technology which has been developed right here in Victoria and is part of the new generation of clean coal power stations designed to slash greenhouse gas emissions,” Mr Batchelor said.

“The project uses a process called integrated drying gasification combined cycle (IDGCC) which can reduce emissions of CO2 from brown coal-fired power generation by 30 per cent and reduce water consumption by 50 per cent, compared to current best practice for brown coal power generation in the Latrobe Valley.

“HRL figures suggest this technology could almost halve emissions from the Latrobe Valley if substituted for all existing coal-fired power generation in the Latrobe Valley and when coupled with other clean coal technology, such as carbon storage, could reduce CO2 emissions to near zero.”

Mr Batchelor said the project was a collaboration between HRL, leading Chinese power station construction firm Harbin Power Engineering Company and the State and Federal Governments.

“The Brumby Government has committed $50 million for this project, which helped encourage a $100 million investment from the Federal Government last year,” Mr Batchelor said.

“The 400 megawatt plant is expected to generate enough electricity to power 500,000 homes and the technology has huge potential for ensuring the sustainable long term use of Victoria’s vast coal resources.

“Given that China is currently constructing two new coal-fired power stations each week to cope with their hugely growing demand for electricity, this project underlines the potential global implications for other coal using countries.

“This project will help reinforce Victoria’s position as a world leader in new clean coal technology for power generation and has the potential to ensure the future viability of the Latrobe Valley as a major contributor to the state’s energy demands.

“The construction of the new power station is expected to generate 300 new jobs during, with 36 to be employed when it is operational,” Mr Batchelor said.