Speaking at a conference in Queensland, 2007 Australian of the Year Flannery attacked Australian coal companies for their complacency.

“The coal industry never ceases to amaze me," media reports quoted Flannery as saying.

“They sit up there in Central Queensland denying they've got a problem, raking in the profits ... but when is the day going to come when they dip into their own pockets to buy their industry a better future, a sustainable future?

“We should be demanding that the coal industry develops these technologies in the next two to three years, to demonstration stage, with penalties otherwise."

But Roche said on Tuesday the coal industry's commitment of $A600 million over 10 years to support low-emission power station technology development in Queensland was already supporting two demonstration projects with global application potential.

“So far this year in Central Queensland, the coal industry has been directly involved in the go-ahead for construction of the world’s first oxy-fuel power plant with carbon capture at Callide Power Station and the unveiling of plans for the ZeroGen coal gasification project," Roche said.

“I suggest that if Dr Flannery wants to catch up on what's happening in the field of low-emission electricity generation technology, he learn about the research and demonstration projects that have been commissioned by the Queensland Clean Coal Council under the leadership of Premier Bligh – the same premier who appointed him to the state’s Climate Change Council."

Roche said despite Flannery's "lack of knowledge" about low-emission technology development, he did agree with his broad observation that more federal funding is required over and above what was announced in the recent budget.

Flannery has called for a boost in federal clean coal technology spending from $500 million to $5 billion.