The Federal Government has announced additional funding to extend the demonstration phase of the Queensland-based Callide Oxyfuel project by fifteen months.

The project demonstrates how oxyfuel carbon capture technology can be applied to traditional coal-fired power stations to significantly lower CO2 emissions.

The Minister for Resources and Energy, Martin Ferguson said the Government will contribute an additional $13 million to the Callide Oxyfuel project to lengthen the project’s demonstration phase to November 2014.

This will allow the project to achieve the 10,000 cumulative operating hours required as a standard to demonstrate new technologies.

Minister Ferguson said that he was confident the move would also have a positive impact on Australia’s broader efforts to demonstrate and deploy CCS technologies.

 “As recent reports by the IEA and ENGO Network highlight, supporting the testing of carbon capture and storage technology projects like this may help Australia meet our long-term emissions reduction targets with the least cost to the economy,” he said.

The remaining cost of the project’s extension will be shared by Australian Coal Association Low Emission Technologies Limited, the project’s Japanese commercial partners, J-Power, Mitsui and Company Ltd and IHI Corporation and the Japanese Government.