The construction of the first new power station to be built in the Latrobe Valley for 12 years is a step closer today, as the Brumby Government signed a contract to facilitate the clean coal $750 million HRL development near Loy Yang B.
Energy & Resources Minister Peter Batchelor said the new plant is due to be operational by 20/12/13 and will create 300 jobs during construction, with 36 ongoing jobs when the power station comes online.
Furthermore, the new technology which will be used to dry the brown coal it burns will significantly reduce carbon emissions and has the potential to ensure the future viability of the Latrobe Valley as a major contributor to the state’s energy demands.
“The Brumby Government is taking action to protect our environment and the future of the Latrobe Valley community and we are taking up the climate challenge,” Mr Batchelor said.
“Today’s announcement is great news for all of Victoria and the people who will build this new power station will be building our future and for the future of the Latrobe Valley.
“The $750 million HRL plant will use technology which has been developed right here in Victoria and is part of the new generation of clean coal power stations designed to slash greenhouse gas emissions.
“The project uses a process called integrated and gasification combined cycle (IDGCC) which can reduce emissions of CO2 from brown coal-fired power generation by 30 per cent and reduce water consumption by 50 per cent, compared to current best practice for brown coal power generation in the Latrobe Valley.
“HRL figures suggest this technology could almost halve emissions from the Latrobe Valley if substituted for all coal-fired power generation in the Latrobe Valley and when coupled with other clean coal technology, such as carbon storage, could reduce CO2 emissions to near zero.”
Mr Batchelor said the project was a collaboration between HRL, leading Chinese power station construction firm Harbin Power Engineering Company and the State and Federal Governments.
“The Brumby Government has committed $50 million for this project, which helped encourage a $100 million investment from the Federal Government last year,” Mr Batchelor said.
“The 400 megawatt plant is expected to generate enough electricity to power 500,000 homes and the technology has huge potential for ensuring the sustainable long term use of the vast coal resources in the Latrobe Valley.
“The 400 megawatt plant is expected to generate enough electricity to power 500,000 homes."
“This project will help reinforce Victoria’s position as a world leader in new clean coal technology for power generation, with the Latrobe Valley at its heart.”