December 02, 2008

NSW coal industry to invest in clean coal technology

The Australian Coal Association announced that the NSW coal industry has agreed to invest an expected USD 400 million over 10 years into clean coal technology. The Australian Coal Association said the money would be raised through a voluntary levy of 20 cents per tonne of coal produced.

Mr Mark O'Neill CEO of Australian Coal Association said “A total of 95% of coal producers had already signed up, with the rest to follow.” Mr O'Neill added the USD 400 million fund would encourage a rash of new research projects. We believe this money will turbo charge new projects."

The uncapped fund would allow investment in existing NSW projects, such as a geosequestration project in Munmorah on the Central Coast and an ultra clean coal demonstration plant planned for Cessnock in the Hunter Valley.

NSW Premier Mr Morris Iemma welcomed the move and said the government was committed to developing low emission coal technology. He added that developing clean coal was therefore the key to tackling climate change while maintaining the NSW economy as NSW had too much invested in the coal industry, in terms of infrastructure and jobs, to dismantle it. He said "It would be a disaster, a national disaster, if the coal industry was shut.”

However, the NSW Greens say the deal is a public relations stunt. Mr John Kaye Greens MP said that it is not a genuine commitment to clean energy. He said "Four hundred million dollars sounds like a lot of money, but when you divide it by ten years it's only 40 million dollars a year and when you look at the 20 cents a tonne coal levy, that is less than 0.3% of the sale price. They would not even notice the expenditure in the day to day market."