Hydrogen Energy Announces $2bn Plant Plan

Less than a week after its launch, Hydrogen Energy has announced plans for a A$2bn coal-fired power generation project at Kwinana in Western Australia.

The 500MW power station will produce electricity for half a million homes, the equivalent of 15% of the state's power demand. A final investment decision to develop the project could be made as early as 2011, with the project coming into operation after a three year construction period.

"As part of the project, we will capture in excess of 90% of the CO2 (carbon dioxide) produced and we will sequester it in a geological formation offshore," Hydrogen Energy chief executive Lewis Gillies said.

Hydrogen Energy, jointly-owned by BP and Rio Tinto, is seeking to develop decarbonised energy projects around the world. It plans to identify and secure opportunities for decarbonised energy projects, working with governments to determine appropriate policies and regulatory regimes, and develop and operate the assets, with partners where appropriate. The projects will typically use coal or petroleum coke as feedstock; although in some cases natural gas may be used.