Today’s launch of Australia’s first commercial scale demonstration of CO² geo-sequestration - the Otway Basin carbon storage project in Victoria - is a clear indication that clean coal is about the future, NSW Minister for Mineral Resources Ian Macdonald said today.

"The Iemma Government is committed to reaching an interim target of Year 2000 greenhouse gas emission levels by 2025 and a long term target of a 60 per cent reduction in greenhouse gas emissions by 2050," Mr Macdonald said.

"Today is an important milestone for clean coal technology development in Australia."

Government and Industry were briefed on the Otway Basin Project in Sydney today, to coincide with the launch.

The Otway Basin project site in Warrnambool in Victoria has been designed to demonstrate the safety and security of the transport, injection and storage of CO².

"This vital technology will help reduce emissions from coal fired power stations both in Australia and overseas," Mr Macdonald added.

"The Iemma Government recently set up a Clean Energy Fund to support renewable energy and clean coal research and in the last year alone we have invested more than $420,000 on projects which specifically assist in clean coal research.

"The Government is also working with industry to establish a NSW Clean Coal Council, reporting to Parliament to help drive reform measures even further.

"A $5 million pilot carbon capture plant is being developed on the NSW Central Coast, through a joint initiative by Delta Electricity and the CSIRO.  

"The research scale Post Combustion Capture (PCC) pilot facility, which is expected to be operational by the middle of this year, will capture greenhouse gas emissions from the Munmorah Power Station, using ammonia absorption technology.

"This will be the first time such technology, which can be used on new or existing power stations, will be seen in action in Australia."  

Mr Macdonald said the PCC pilot facility would undertake a range of experimental trials to determine the potential to adapt the technology to NSW coal & power station conditions, capturing up to 5,000 tonnes of CO²a year.

"This project, in conjunction with the search for carbon geo sequestration sites by the NSW Department of Primary Industries should provide the base for a $150 million demonstration scale carbon capture and storage project in NSW by 2013."

Mr Macdonald added that the Sydney Basin and Darling Basin Reservoir Prediction Studies carried out by DPI, reveal that NSW does have potential for CO² storage.

Media contact: Lyndall Derrig 0400 462 447