Research funded by Brown Coal Innovation Australia (BCIA) (trading as Australian Carbon Innovation (ACI) from 2019), with support from the Victorian and Australian Governments, has established that Victoria’s unique lignite and CO2 storage capacity provide unmatched opportunities for new industries and skilled jobs in the Latrobe Valley.

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From 2009 – 2024, BCIA / ACI demonstrated a successful track record in management of lignite research, leveraging combined Victorian and Australian government funding of $15.9M into a $57.5M research portfolio. The projects funded were in three main areas: low-emissions power generation, improved CO2 capture technologies, and value-added products from lignite. Unfortunately, research funding to ACI was discontinued by both the State and Australian Governments, forcing it to wind up its operations as of 30 June 2024.

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The outcomes of this research program are summarised in the legacy report, The unrealised potential of Victorian lignite: Exploring the net-zero research opportunities. This report provides details of all the projects funded by BCIA / ACI during the 2009 – 2024 period, with a list of key published references where further information may be found.

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Through its research portfolio, BCIA / ACI opened up new avenues for low-emissions commercial development of lignite. Perhaps the most significant field of research was in oxygen-blown entrained-flow gasification of lignite, which extended from fundamental laboratory research to support for the successful Hydrogen Energy Supply Chain (HESC) Pilot Project in 2020-21. ACI commissioned modelling that demonstrated the technical feasibility of building a net zero emissions lignite to hydrogen plant and would provide electrical generation support for the renewable energy transition. This would utilise existing technology as of today. Plans to commercialise the HESC process are under way, which would create a new export industry with potential to boost Victoria’s Gross State Product (GSP) by a minimum of $1.1 billion per year over its 30-year life. This estimate does not include the value of spin off industries that would flourish if such a facility was built.

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BCIA was also a major supporter of CO2 capture research, supporting demonstrations of CSIRO and CO2CRC technologies at Loy Yang and Hazelwood power stations, in collaboration with international partners. A spin-off company was created to commercialise the CO2CRC technology, and CSIRO’s collaboration with IHI Corporation, Japan, advanced the commercialisation of new solvents and hardware for CO2 capture. Energy savings of up to 40% were achieved under real-world conditions, significantly advancing the prospects for early deployment of carbon capture and storage (CCS) in Victoria.

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Research on new products from Victorian lignite has identified some highly prospective technologies worthy of future development. Supplementation of agricultural soil with lignite and lignite extracts helps to boost soil health and crop productivity, and enhance the drawdown of CO2 from the atmosphere, but long-term field trials are still required to quantify the benefits.

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Victorian lignite can also be converted into a range of valuable carbon products, including monolithic activated carbon, carbon fibres, carbon quantum dots, and graphene. These are low-volume products with high-value applications in 21st Century industries, such as renewable energy, batteries, microelectronics and waste remediation. As such, they offer potential for new industries and job creation in the Latrobe Valley.

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Looking further ahead, the anticipated implementation of CO2 capture to limit emissions from heavy industry in Victoria will create a supply of purified CO2 that can be transformed into valuable products. The potential exists for local industries producing low-emissions construction materials and fuels, as well as food ingredients, fertilisers and industrial chemicals. These are valid opportunities, whether the CO2 is sourced from lignite gasification, cement manufacture or directly from the atmosphere. These opportunities are being actively developed in the United States and Europe, but Australia is lagging in this regard.

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SKILLS DEVELOPMENT

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The research supported around 40 postgraduate students and involved 47 government, industrial and research partner organisations, from Australia, China, Japan, USA, Germany, France, Denmark, Sweden and Belgium.

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This highlights the dedication, commitment and ingenuity of the many bright and talented researchers and industrialists who were prepared to tackle the challenge of climate change through development of low-emissions lignite technologies.

 

To date, ACI has also provided scholarships to 12 Engineering undergraduate students at Federation University, Churchill. These scholarships supported local students to gain qualifications in skills needed as the region’s economy transitions away from traditional forms of power generation.

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Following the success of its undergraduate scholarship program, ACI has created a legacy fund with Federation University Australia to create further opportunities for students from the Gippsland region to pursue STEM studies in the engineering and allied disciplines.

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From 2025, Australian Carbon Innovation Scholarships of $10,000 each will be available to support undergraduate studies in engineering or science (chemistry, physics, mechatronics) with a strong preference for engineering at Federation University’s Gippsland campus. Application details are available at Australian Carbon Innovations Scholarships - Federation University Australia.

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AN ONGOING NEED FOR RESEARCH

 

There remains a need for forward-looking research to develop these opportunities and nurture the local entrepreneurs needed to take up the challenge of creating new low-emissions industries in Victoria.

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It is hoped that the winding up of ACI does not mark the end of lignite research in Victoria, but merely an interlude before a new phase of development is stimulated. Commercialisation of HESC would confirm that Victoria’s unique lignite and CO2 storage capacity have a crucial role to play in decarbonising the Japanese economy, and create a valuable new export industry for Victoria.

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Hopefully this will lead to renewed appreciation of the value of lignite for Victoria’s continued prosperity, and revived government support for new manufacturing opportunities based on lignite and captured CO2. At that time, the opportunities identified by BCIA / ACI may be reappraised from a fresh perspective.