Report warns "clean coal" plants could worsen Australian drought

The use of emerging "clean coal" technologies in Australia could significantly increase the amount of water used to produce electricity, according to a study by a government agency, placing further pressure on the country's already sparse water resources.

A report released last week by the National Water Commission estimated that coal-fired power plants incorporating carbon capture and storage (CCS) systems may end up using one-quarter to one-third more water that facilities without the technology.

A planned 530MW integrated gasification and combined cycle plant incorporating CCS is expected to be operational in Queensland state by 2015, and the government has signalled that CCS is likely to become increasingly prevalent for a country that is largely reliant on coal power.

Last year, prime minister Kevin Rudd launched an A$100m ($83m, £50.4m) clean coal research institute aimed at making Australia a global hub for the technology.

However, the report warns that rollout of CCS technologies could lead to additional pressure on the country's already taxed water resources. "While there is considerable research underway around the world into reducing carbon emissions from power stations, few countries face Australia‘s limited water supplies," the report noted.

It recommended that as a result, domestic research into CCS should prioritise the development of "low water-use" methods that are less likely to exacerbate the droughts that climate scientists predict will become an increasingly common feature of the Australian climate.

The country's thermal power plants, which are primarily coal-fired facilities, account for about 1.4 per cent of total national water consumption. However, the study warns that this water use by energy firms could rise in the future, as a result of not just CCS but also solar and geothermal generation plants that require water for electricity generation and cooling.

The National Water Commission recommended that power companies should be offered economic incentives to use water more efficiently.

A decade-long drought has gripped the country's southeast, prompting state and national governments to reconsider existing policies on water usage. The federal government in 2004 established the National Water Initiative – which is overseen by the commission – as Australia's blueprint for water reform.