Australia coal technology reduces emissions

Updated May 2, 2008 14:34:10

Australia's Resources and Energy Minister, Martin Ferguson, says investment in new technology to reduce carbon emissions by the coal industry has world-wide benefits.

Australian company Exergen has been trialing the technology at a pilot plant in Northern Tasmania, in Australia's south.

Mr Ferguson visited the plant to announce an investment in Exergen by two companies, Indian multi-national Tata and Australian engineering firm Thiess, to build a demonstration plant in Victoria next year.

"The technology is especially relevant to Australia's challenge to reducing green house gas emissions," he said.

"It's also clearly part of the international challenge and how developed countries such as Australia, join with developing countries such as China, India and Indonesia to reduce green house emissions."

The technology works by lowering coal down a 700 metre shaft where the heat and pressure extracts moisture, and when burnt means up to 40 per cent less carbon in the atmosphere.