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Peter Costello

Treasurer

11 March 1996 - 3 December 2007

Media Release of 25/10/2006

NO.116

JOINT MEDIA RELEASE
TREASURER &
THE MINISTER FOR INDUSTRY, TOURISM & RESOURCES

$125M TOWARDS A LOWER EMISSION FUTURE

Federal Treasurer, Peter Costello, and Industry Minister Ian Macfarlane today announced the first two projects under the Australian Government’s $500 million Low Emissions Technology Demonstration Fund (LETDF).

The grants from the Australian Government are:

  • $75 million for a $420 million project to build a large-scale solar concentrator in regional Victoria to be built by Solar Systems. The project will commence in 2008 and reach full capacity by 2013;
  • $50 million towards a $360 million pilot for a brown coal drying and a post-combustion carbon dioxide capture and storage project at the International Power’s Hazelwood facility. Construction will begin early next year with the project to be completed by the end of 2009.

The Australian Government’s $125 million contribution towards these projects will demonstrate technologies with the capacity to reduce greenhouse gas emissions from Australia’s energy sector over the next 30 years.

Both projects are based in Victoria and have attracted financial support from that state.

Treasurer Peter Costello, said the energy sector had been instrumental in Australia’s economic success and that ensuring it was environmentally sustainable in the longer term was a key factor in the Government’s climate change strategy.

“Technological improvements will be instrumental in delivering large-scale reductions in emissions both in Australia and throughout the rest of the world," Mr Costello said.

”The challenge is to reduce the cost of these technologies so that a range of competitively priced low emission technologies is available."

Mr Macfarlane said technological options will allow Australia to apply the best solutions to its future energy needs. 

“Our international partners in the Asia Pacific Partnership on Clean Development and Climate (AP6) will also benefit from our expertise and the lessons learned,” Mr Macfarlane said.

“Following successful large scale demonstration of its solar technology, Solar Systems intends to commercialise the technology domestically and internationally through the AP6 initiative." 

“Minister for Environment and Heritage, Senator Ian Campbell, and I will be making further announcements about the LETDF in the coming weeks,” Mr Macfarlane said.

25 October 2006

Contact:
David Alexander, Treasurer’s Office - 03 9650 0244
Lisa Chalk, Mr Macfarlane’s Office - 02 6277 7580