The Federal Government has awarded the HRL Dual Gas project a six-month extension to its $100 million dollar grant, following the failure of the project to meet conditions for the finance set in 2007.

 

The approval of the coal and gas-fired plant is currently being challenged in the courts.

The Resources and Energy Minister, Martin Ferguson said the extension has been given because of the court action.

 

"[If] the HRL project does not meet the six-months requirement then that project, a grant of the previous Howard Government, will fall over," he said.

 

The proposed new 600MW HRL ‘Dual Gas’ power station has received part approval by EPA for a 300MW 'Syngas' (coal gas) demonstration plant.  However, that approval is currently being challenged through the Victorian Civil and Administrative Tribunal (VCAT). The second 300MW 'natural gas' (dual gas) component phase is still up for approval subject to the  successful completion of the first 300 MW plant.