It is reported that the Victorian and Federal Governments have established a USD 90 million research fund to encourage low-emission brown coal technology in the Latrobe Valley in Victoria east.

Companies have been invited to bid to develop ways to dry brown coal from the Latrobe Valley and create commercial energy products.

Mr Martin Ferguson Minister for Energy and Resources admits previous attempts have failed. He says the fund may result in projects to convert brown coal into hydrogen, liquefied gas, fertiliser or char.

He added that "This advanced lignite demonstration program is about saying we're prepared to back it in with 90 million. You've got to put money on the table, we've all got skin in the game and we know it can be done. Technology is the opportunity, but we've got to give it a go and who knows what will come out of it."

Mark Wakeham from Environment Victoria says money should be directed at renewable energy research not brown coal. He said that "Continually we see taxpayers money poured into so called clean coal projects and these projects fail to materialise."

He added that "We lose significant amounts of money and we waste time in the fight against climate change."

Source - abc.net

(www.coalguru.com)