The demonstration plant will use mechanical thermal expression technology developed by the Cooperative Research Centre for Clean Power Lignite, which will heat and squeeze the lignite to remove up to 70% of the coal’s moisture prior to burning.

Victorian Energy Minister Theo Theophanous was present at the launch, saying the construction of the demonstration plant represented the start of an exciting technology that could dramatically reduce emissions from Victoria’s coal-fired power plants.

“Victoria relies on the Latrobe Valley for 90 percent of our electricity thanks to massive reserves of brown coal,” Theophanous said.

“However, our brown coal has a very high water content resulting in higher than normal greenhouse gas emissions.

“To ensure that our local power industry remains sustainable, we have to find new ways to reduce emissions from our brown coal power generators.”

Theophanous said the Bracks Government had contributed $A2.2 million towards the $A6.3 million MTE demonstration plant, near the 2000MW Loy Yang A Power Station.

The Commonwealth Government also contributed to the project with support from the brown coal industry.

“So far this technology has been successfully demonstrated on a laboratory scale, and with the construction of the demonstration plant, we expect to see the first dried coal used in early 2007,” Theophanous said.