Brown Coal Innovation Australia will have to determine whether it can continue to exist if the state government does not resume funding for its research and development projects for Latrobe Valley coal.
The state government dumped BCIA funding from this year’s budget.
BCIA had been jointly funded by both state and federal governments to the tune of about $15 million since 2009.
However, Commonwealth funding has been tied to state funding on a dollar-for-dollar basis.
BCIA chief executive Brian Davey said they were in discussions with the government about future funding.
“As soon as our current funding runs out, we will have to examine if we are viable into the future,” Mr Davey said.
BCIA has leveraged $58 million in investment from industry and research institutes to test new low-emissions applications for Latrobe Valley’s brown coal deposits.
This includes supporting the early stages of a new coal-to-hydrogen project at Loy Yang A as well as also looking at applications for coal in fertilisers and chemicals.
It included testing carbon capture and storage technology at Loy Yang A and two others at Hazelwood before it closed.
BCIA funding has also supported 40 higher degree students and led to six patents and nearly 700 academic publications.
“But without funding, we can’t do this. If the government does not provide anything, then this provides little incentive for the private sector to invest,” Mr Davey said.
“We don’t understand why the Victorian government does not treat funding research [into] the state’s largest mineral resource in the same way it funds other sectors – like medical and agriculture sectors.”
Member for Eastern Victoria Melina Bath fronted Parliament last week to ask Treasurer Tim Pallas to reinstate funding for BCIA.
“It is very important research that the treasurer needs to fund into the future to allow the company to continue with their research and development into uses for our great resource,” Ms Bath said.
Treasurer Tim Pallas said discussions between the department and BCIA about future funding were expected to finish shortly.
He said he understood BCIA was also speaking with its other members.
“We continue to consider coal projects consistent with the government’s Statement on Future Uses of Brown Coal, such as our partnership in the Hydrogen Energy Supply Chain pilot project,” Mr Pallas said.
“Projects must meet rigorous economic and environmental standards, and foster job creation.”
