Central Queensland will be the site of an Australian first trial of new clean coal technology which could help ensure the long-term job security of thousands of people working in the State's coal industry.
Premier Peter Beattie said the Queensland Government owned Stanwell Corporation Limited will begin a feasibility study and test drilling in the Springsure/Emerald area in May.
"Stanwell is taking the lead in the research and development of clean coal technologies - that means long-term job security for Queensland's strong coal industry for the thousands of families who depend upon it," Mr Beattie said.
Test drilling will begin in the Denison Trough to evaluate the area.
During the test, water will be injected deep underground into sandstone reservoirs to determine their quality. As part of the testing around 60 tonnes of carbon dioxide (about three tanker loads) will be injected into the well.
The test will allow the company to determine the long-term feasibility of two cutting edge technologies:
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A process to convert coal into gas, removing carbon dioxide to produce a high hydrogen fuel used to generate power; and
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A second technology that captures and compresses carbon dioxide to allow it to be stored under ground.
"If the tests prove successful Stanwell will build a demonstration facility - which will combine carbon capture and safe storage of carbon dioxide - a world first," Mr Beattie said.
The Premier said Stanwell was seeking funding from the Federal Government's $500 million Low Emissions Technology Demonstration Fund.
"I look forward to working with the Prime Minister to make the internationally significant project a reality," he said.
At last week's COAG meeting the Prime Minister, myself and other State and Territory leaders agreed that greater action must be taken on addressing climate change.
"The funding of Stanwell's demonstration facility will be a clear sign that the Prime Minister is serious about addressing climate change."
Media Contact: Premier's Office - 3224 4500