Australia scraps coal-fired CCS plant

CANBERRA, Australia, Dec. 20 (UPI) -- Australia has scrapped plans for a $4.3 billion Queensland coal-fired power station with carbon capture and storage capacity.

"We had hoped to have a clean coal power station up and running by 2015 but the fact is that the early research has shown us that this is not viable at this time on a commercial scale," said Queensland Premier Anna Bligh in announcing the decision Sunday, a news release states.

A joint state-commonwealth government and industry-led research project, ZeroGen was to have combined integrated coal gasification open cycle technology with CCS and was touted as likely to be the world's first such facility.

The coal-fired plant would initially have captured up to 65 percent of its emissions, with the potential to capture and store up to 90 percent -- or 2 million tons of carbon dioxide -- to be stored in deep underground sandstone formations.

Bligh said that $190 million had been invested on developing a clean coal power station, with $101 million from the Queensland government and the remaining from the coal industry and the commonwealth.

Noting that the research wasn't wasted, Bligh said the Queensland government "is not walking away from ZeroGen or from clean coal technology."

"In fact, the Queensland government will be spending more on this technology over the next three to four years and we'll be doing it hand in hand with an agreement with the coal industry," she said.

Queensland is Australia's largest producer and exporter of black coal, with the potential to be a major player in natural gas production and exports.

The move is a setback for supporters of CCS with coal-fired power stations as well as for the Australian government, which intends to introduce legislation next year to limit the emissions intensity of coal-fired power stations.

Funding for CCS represents 37 percent of the funding under the Australian government's $5 billion clean energy initiative.

More than 80 percent of Australia's electricity is generated by coal-fired plants, with approximately 88 percent of Queensland's 10,000 megawatts of installed power generation capacity coming from coal.

Ralph Hillman, executive director of the Australian Coal Association, acknowledged that developing and demonstrating low emission technologies such as CCS, solar thermal and geothermal involve "very large expenditures and substantial risks."

"It is essential, however, (that) the governments continue to make the investment…as all of these technologies will be essential to maintaining energy security while reducing carbon emissions," Hillman said in a statement.