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Thursday, 11 October 2012
Page: 8106

HRL Dual Gas Pty Ltd

(Question No. 2132)

Senator Milne asked the Minister for Resources & Energy, upon notice, on 31 August 2012:

With reference to the answer provided to question no. SR11, taken on notice during the 2011-12 Supplementary Budget estimates hearing of the Economics Legislation Committee, in which the department confirmed that a component of the Commonwealth funding provided to the Victorian Government under the Carbon Capture and Storage Flagships Program, for the pre feasibility stage of the CarbonNet project, was granted by the state government to HRL Dual Gas Pty Ltd:

1. What was the total amount provided to HRL Dual Gas Pty Ltd by the state government.

2. Was the Commonwealth aware of this on payment to HRL Dual Gas Pty Ltd prior to it occurring.

3. Will the Commonwealth attempt to reclaim this money if the HRL Dual Gas Project does not proceed.

Senator Chris Evans: The Minister for Resources & Energy has provided the following response to the honourable senator’s question:

Funding of a pre-feasibility study into the application of carbon capture technology to HRL’s integrated drying gasification combined cycle project (IDGCC) under the CarbonNet project was made through an agreement with Syngas Plus Pty Ltd. This is a separate company to HRL Dual Gas Pty Ltd which was progressing the Dual Gas Project chosen for funding under the Low Emissions Technology Demonstration Fund (LETDF).

1. The Australian government contributed approximately $612,500 (GST inclusive) through the CarbonNet project to Syngas Plus Pty Ltd for a pre-feasibility study on carbon capture. This amount was matched by the Victorian State Government and the HRL Group.

2. Yes, the Australian Government was aware of the components and costs of the work program under the CarbonNet Project.

3. No, the Australian Government will not reclaim the expenditure because the payment was not for the Dual Gas project which is no longer receiving funding under the LETDF. The carbon capture pre-feasibility study was delivered by Syngas Plus Pty Ltd as commissioned and in accordance with the Australian Government’s deed of agreement with the Victorian Department of Primary Industries.