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In May 2011 four major banks in Australia denied funding for the coal plant, raising doubts about its viability. The denial came weeks after the plant was initially approved by the Victorian Environment Protection Authority. The EPA's decision would allow the first coal plant to be build in Victoria in nearly 20 years.<ref name="No">Royce Millar & Adam Morton, [http://www.theage.com.au/national/big-banks-no-to-coal-plant-20110520-1ewxj.html "Big banks 'no' to coal plant"], ''The Age'', May 21, 2011.</ref>
In late July 2012 the Federal Minister for Resources and Energy, [[Martin Ferguson]], announced that, after four extensions granted to HRL to comply with conditions of a $100 million funding agreement, the government had decided to withdraw funding as the company "did not meet the required conditions set out in the funding deed."<ref>Martin Ferguson, [http://minister.ret.gov.au/MediaCentre/MediaReleases/Pages/DualGasProject.aspx "Funding not Proceeding for Dual-Gas Project"], Media Release, July 27, 2012.</ref> The decision was welcomed by environmentalists. Environment Victoria Campaigns Director Mark Wakeham stated that "this is likely to be the final nail in the coffin for the HRL proposal, and for all new coal-fired power stations across Australia."<ref>Environment Victoria, [http://environmentvictoria.org.au/media/game-over-hrl-coal-fired-power-station "Game over for HRL coal-fired power station: Federal funding withdrawn from polluting power station"], Media Release, July 27, 2012.</ref> Greenpeace Australia Climate and Energy Campaigner, Julien Vincent, stated that “this result is a great reward for the years of hard work by environment organisations, grassroots grass roots groups and the broader community to resist this dirty project.”<ref>Greenpeace, [http://www.greenpeace.org/australia/en/mediacentre/media-releases/climate/Greenpeace-delight-at-cancelled-coal-funding/ "Greenpeace delight at cancelled coal funding"], Media Release, July 27, 2012.</ref> Following the federal government decision the Victorian Minister for Energy, [[Michael O'Brien]] said that while $20 million of the Victorian government's $50 million pledge had been spent, the federal decision "has serious consequences for the separate Victorian funding agreement ... The state government must ensure that Victorian taxpayer funds are protected."<ref>David Crowe, [http://www.theaustralian.com.au/national-affairs/funding-cuts-hit-la-trobe-valley-power-project/story-fn59niix-1226437140214 "Funding cuts hit La Trobe Valley power project"], ''The Australian'', July 28, 2012.</ref>
==Background==
In July 2002, the then Minister for Energy and Resources, Candy Broad, announced that the government had awarded exploration tenders for brown coal deposits in the Latrobe Valley, one for which was to HRL. In her media release Broad stated that "the Bracks Government is using the coal tender to encourage industry to adopt new, clean technologies to ensure brown coal remains a viable energy source for Victoria in the future."<ref>[http://www.legislation.vic.gov.au/domino/Web_Notes/MediaRelArc02.nsf/4d9fa39283ff510d4a256b36001bd4e0/3b4cc25c73b09a764a256bf90080ea8d!OpenDocument&Click= "Green Technologies Flow From Brown Coal Tenders"], Media Release, July 17, 2002.</ref>
On July 1, 2008 the Victorian Government announced that it had signed a contract with HRL approving the development of a new $750 million 400 megawatt coal fired power station. In the media release announcing the deal, the Energy and Resources Minister [[Peter Batchelor]] stated that the project "is expected to be operational by 2012/13" and the the Chinese power station construction firm Harbin Power Engineering Company would construct the plant. In the media release, Bathchelor Batchelor claimed that the plant would use "integrated drying gasification combined cycle (IDGCC) which can reduce emissions of CO2 from brown coal-fired power generation by 30 per cent and reduce water consumption by 50 per cent, compared to current best practice for brown coal power generation in the Latrobe Valley."<ref>Energy and Resources Minister Peter Batchelor, [http://www.legislation.vic.gov.au/domino/Web_Notes/newmedia.nsf/35504bc71d3adebcca256cfc0082c2b8/88d3d4d98cab8a78ca25747a00078360!OpenDocument "New $750 Million Clean Coal Power Station a Step Closer"], Media Release, July 1, 2008.</ref>
The Victorian government announced that they would contribute $50 million from the [[Energy Technology Innovation Strategy]] (ETIS) and that on the basis of that the project would receive $100 million from the Australian government's [[Low Emissions Technology Demonstration Fund]] (LETDF). (It was reported that HRL had sought $148 million from the federal government.)<ref>Mathew Murphy, [http://www.theage.com.au/news/business/hrl-to-clean-up-on-coal-grant/2007/03/09/1173166985613.html "HRL to clean up on coal grant"], ''The Age'', March 10, 2007.</ref> However, in May 2008 Batchelor told a Public Accounts and Estimates Committee hearing on the state budget that the funding was an offer conditional on HRL and its joint venture partner succeeding in getting "the rest of the scheme adequately funded." He also explained that "we are not handing over money until they have reached that phase. Then they would need to go through approvals processes in the local environment, and they would need to meet those," he said.<ref name="estimates">Public Accounts and Estimates Committee, [http://www.parliament.vic.gov.au%2Farchive%2Fpaec%2FInquiries%2Fbudgetestimates_2008-09%2FTranscripts%2F22_05_08_Energy_Resources.doc Public Accounts and Estimates Committee Inquiry into budget estimates 2008–09"], May 22, 2008.</ref>
"Even with this part-approval the new plant will pump millions of tonnes of pollution into our environment every year. How is this protecting the environment or Victorians?," she said.<ref name="EVGo"/>
Environmental groups -- including Environment Victoria, Greenpeace and Stop HRL -- organised a protest against the EPA's decision on the steps of State Parliament on May 24.<ref>Environment Victoria, [http://www.environmentvictoria.org.au/content/urgent-snap-rally-no-new-coal-victoria Urgent Snap Rally: No New coal for Victoria"], Environment Victoria website, May 20, 2011.</ref><ref>[http://www.greenpeace.org/australia/news-and-events/news/Climate-change/stop-hrl "Stop HRL: Hundreds to rally against new coal plant"], Media Release, May 24, 2011.</ref> The snap rally attracted 300 people. "We're going to tell investors, super funds, bank, joint venture partners, whoever it may be, that this is a project, that if they get associated with, there's going to be a massive community campaign all over them," Julian Vincent from Greenpeace said. Environment Victoria's Camapaign Campaign Manager, Mark Wakeham told the crowd that "we cannot tackle climate change if we are building new coal-fired power stations."<ref>Alison Savage, [http://www.abc.net.au/news/stories/2011/05/24/3225698.htm "Protesters demonstrate against new power plant"], ''ABC News'', May 24, 2011.</ref>
==HRL wins legal challenge ... but uncertainty over project remains==
Following the EPSEPA's conditional approval for the project both Environment Victoria and HRL flagged that they were considering possible legal challenges. Environment Victoria's susbsequent subsequent legal challenge centred on the EPA's decision to assess best practice energy production based on a benchmark of a brown coal-fired power station rather than including alternative energy sources.<ref name="Gearin"/> For its part, HRL appealed against the EPA's decision to approve one 300MW unit and not both. In a statement, reported in the ''Australian Financial Review'' but not available on the company's website, stated that "Dual Gas has some significant concerns with the EPA Victoria-configured 300MW alternative."<ref>Patrick Durkin and Matthew Dunkley, [http://www.afr.com/p/national/vic_clean_coal_plant_left_up_in_0IraR5MSEJe1OyUwMZnbuO "Vic clean coal plant left up in the air"], Australian Financial Review, May 21-22, page 4. (Subscription required).</ref><ref name="No"/> (AAP reported that "HRL management would not speak to the media, but issued a written statement...".<ref>[http://www.theage.com.au/victoria/legal-action-talk-over-power-station-20110520-1ewl9.html "Legal action talk over power station"], ''The Age'', May 21, 2011. (This is an AAP story).</ref>
In March 2012 the Victorian Civil and Administrative Tribunal overturned the Environment Protection Authority's decision on the project reinstating approval for the project to proceed as a 600 megawatt plant. "The EPA has misapplied the principles of environmental protection and best practice … in seeking to halve the capacity of the Dual Gas project," the tribunal found. The tribunal also rejected an application by Environment Victoria and two other environmental groups that the project should be rejected entirely. However, the tribunal added two caveats. The first was that the project emit no more than 0.8 tonnes of carbon dioxide for every megawatt hour of electricity generated. The second, and more problematic condition for HRL was that that the project couldn't proceed until the federal government concluded a deal under its [[Contract for Closure Program]] to shutter an existing coal-fired power station. The tribunal<ref>Tom Arup, [http://www.theage.com.au/victoria/power-ruling-setback-for-epa-20120329-1w17s.html#ixzz1zJK4wL00 "Power ruling setback for EPA"], ''The Age'', March 30, 2012.</ref>
=== Planning rules favour coal over wind===
[[File:HRL Coal Power Plantsml.jpg|right]] Following the decision Environment Victoria pointed out that the new Bailleau government's policy made it easier to get approaval approval for a brown coal-fired power station than for a wind farm. Prior to the election the Liberal Party campaigned on a policy of restoring "fairness and certainty to the planning system for wind farms" by instiuting instituting a number of new measures including ensuring that "the placement of turbines will be no less than two kilometres from the nearest home unless a contract between the resident and wind farm developer is agreed"giving residents a veto over the construction of a wind farm within two kilometres of their house.<ref>[http://vic.liberal.org.au/webData/policies_others/Planning.pdf "The Victorian Liberal Nationals Coalition Plan for Planning"], Liberal Party of Victoria and National Party of Victoria, November 2010, page 19.</ref>
However, approximately 250 homes would be within two kilometres of the proposed Dual Gas power station.<ref>[http://www.environmentvictoria.org.au/blog/posts/playing-favourites "Playing favourites with Victoria's energy future"], Environment Victoria, May 25, 2011.</ref> (See [http://www.environmentvictoria.org.au/sites/default/files/HRL%20Coal%20Power%20Plant.jpg here] for a higher resolution version of the map). "It obviously sends the wrong signal when we are trying to clean up the energy supply and reduce greenhouse gas emissions," said Environment Victoria campaigns director Mark Wakeham. A resident within the two kilometre range told Age reporter Adama Adam Morton that her asthma had got worse since moving to the Latrobe Valley. "It seems to me that the coal plants they are building are coming closer and closer to the township of Morwell, and that will mean that residents will have to move further out from the town to get away from them," she said.<ref>Adam Morton, [http://www.theage.com.au/victoria/stricter-rules-for-wind-turbines-than-for-coal-plants-20110524-1f2ie.html "Stricter rules for wind turbines than for coal plants"], ''The Age'', May 25, 2011.</ref>
==Timeline==
*'''Sponsor:''' Dual Gas
* '''Parent company:''' HRL
*'''Location:''' Morwell, Victoria
*'''Coordinates:'''47.783889, 108.372222 (approximate)
*'''Status:''' Shelved
*'''Coal Type:''' Brown
*'''Coal Source:'''
*'''Source of financing:''' State and federal subsidies; Banks refused to fund project;<ref name="No"/>
==Citizens groups campaigning against the project==
* Darren Gray, [http://www.theage.com.au/victoria/council-backs-coal-in-morwell-gas-power-play-20110901-1jo6s.html "Council backs coal in Morwell gas power play"], ''The Age'', September 2, 2011.
* [http://www.theage.com.au/opinion/political-news/ferguson-grants-extension-for-contentious-power-plant-project-20120210-1sbcf.html "Ferguson grants extension for contentious power plant project"], ''The Age'', February 10, 2012.
