Australian company to produce cleaner coal

Updated May 3, 2008 12:40:59

Australian company Exergen says a multi-million dollar investment will allow it to build a new plant to make brown coal more environmentally friendly.

The company has successfully trialled new technology at its pilot plant in the southern state of Tasmania.

The technology removes moisture and contaminants from the coal, reducing carbon emissions.

Indian multi-national company Tata and Australian engineering firm Sedgman have become major investors.

Exergen's general manager, Greg Kukla says the company's trials are working towards a plant in Victoria.

"We have now proven the concept, we've been quietly trialing a number of coals over several years and we're now confident that we're about to embark on a definitive feasibility study which will take another eight months and then we're going to build a demonstration-sacle plant, closely followed by a commercial plant, in the Latrobe Valley."