Australia Establishes Clean-Coal Center to Encourage Companies

By Gemma Daley

Sept. 19 (Bloomberg) -- Australia's government set up a A$100 million ($80 million) clean-coal institute to encourage companies such as BHP Billiton Ltd. to establish low-emissions power projects that help tackle global warming.

Prime Minister Kevin Rudd, who ratified the Kyoto Protocol in his first day in office and wants to cut emissions 60 percent by 2050, announced the institute after meeting with BHP Chief Executive Officer Marius Kloppers in Canberra today.

``Our intention with these projects is to reduce greenhouse gas emissions,'' said Rudd, 50. ``This is an important area to achieve real results.''

The government wants to promote projects that use new technology to help reduce emissions of greenhouse gases, blamed for global warming.

BHP sees it as ``highly necessary'' to stabilize carbon dioxide content in the atmosphere, Kloppers said in an interview.

To contact the reporter on this story: Gemma Daley in Canberra at gdaley@bloomberg.net