THE Rudd Government is believed to have earmarked $275 million for six new clean coal projects in its first budget next week alongside similar funding for renewable technologies.

A clean coal council and a taskforce to develop storage options are expected to form part of its $500 million commitment to clean coal made during last year’s election campaign.

These new funds for clean coal technology follow $350 million committed to technology development under the Howard government’s Low Emissions Technology Development Fund.

These projects attracted more than $2 billion in matching industry investment.

Development of clean coal technology as a possible solution to the threat of climate change has been backed by environmental leaders such as former USvice-president Al Gore and British climate policy adviser Nicholas Stern.

Last month, the Climate Institute and WWF were attacked by some rival environment groups for backing the fast-track development of clean coal technology in Australia.

Greenpeace International will continue its attack on clean coal with the release of a report today claiming the technology is too uncertain, will take too long to develop and will be too expensive.

The Government is planning to spend $50 million to further develop the use of ammonia to capture carbon dioxide from the emissions of the Munmorah coal-fired power station in the Hunter Valley in NSW and $50 million to develop gasification technology at the Centre for Low Emissions technologies in Queensland.

The Government is also expected to honour its pre-election commitment to spend $50 million in a national carbon-mapping and infrastructure plan and $50 million more on post-combustion-capture technology for the Latrobe Valley in Victoria.

The Government is also understood to have plans to offer a competitive grants program similar to the LETDF of up to $140 million.

The programs fall under the control of Resources and Energy Minister Martin Ferguson. He said last night he could not comment on budget speculation but backed the Government’s commitment to help develop the technology, given that 83 per cent of Australia’s electricity was generated from coal.

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