Contract signed for carbon capture and storage project

By: Chris Smith

The Minister for Resources and Energy, the Hon Martin Ferguson MP, today announced the finalisation of a contract for the

The Minister for Resources and Energy, the Hon Martin Ferguson MP, today announced the finalisation of a contract for the construction of a carbon capture and storage project in central Queensland - the first in the world to demonstrate the application of greenhouse gas reducing oxyfuel technologies in an existing coal power station.

Minister Ferguson said that the Australian Government's $50 million contribution to this project from its Low Emissions Technology Demonstration Fund will play an integral part in advancing new technology and signal to the world that Australia is serious about reducing emissions. The project aims to provide a platform to support the development of geological storage projects with capacities in excess of 1 million tonnes of CO2 a year.

"The project involves the retrofit of oxyfuel technology to a 30 MWe unit at Callide A power station for electricity generation. It will provide detailed engineering design, costing data and operational experience, and help underpin the commercial development and deployment of this technology," Ferguson says.

The project will capture and store about 17,000 tonnes of CO2 a year for up to three years, and provide significant reductions in oxides of sulphur and oxides of nitrogen.

"A key element of the oxyfuel project is the joint venture between CS Energy and Japanese companies IHI Corporation, J-Power and Mitsui &Co, the Australian Coal Association (ACALET), Schlumberger and Xstrata Coal," he says.

The project comes just days before Australia plays host to delegates from the Asia Pacific Partnership on Clean Development and Climate (APP) Cleaner Fossil Energy and Power Generation and Transmission (PowerGen) Task Forces.

APP consists of Australia, Canada, China, India, Japan, the Republic of Korea and the United States of America, and focuses on the development, deployment and transfer of cleaner, more efficient technologies.

"APP is a unique international forum as it was formed to find greenhouse solutions that maintain energy security. The good news is that governments and companies across the region are working together for positive environmental outcomes with long-term benefits that can be rolled out across the world," Ferguson says.

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