Product stewardship

Our challenge is to improve the contribution that our products make by increasing their value and reducing the impacts of their supply and use

While climate change policy will influence demand for our products into the future, coal will remain an important part of the global energy mix.

Our challenge is to improve the contribution that our products make by increasing their value and reducing the impacts of their supply and use. This is called product stewardship and includes providing product choice, increasing product value for customers and managing impacts along the supply chain.

The use of coal contributes about 25 per cent of global greenhouse gas emissions; therefore climate change and greenhouse gas emissions are a key area of focus for us.

The production of electricity from coal is the major contributor of greenhouse gas emissions in the coal supply chain. Greenhouse gas emissions from the combustion of our product are approximately 30 times more than the emissions that result from mining, processing and transporting the coal. As a result, our product stewardship activities are focused on reducing emissions from the use of coal by our customers.

We actively support and participate in:

Research to develop low emission coal technology
Development of a policy environment to enable the deployment of low emissions coal technologies.

Product stewardship activities

Programme	Outcomes
COAL21	Australian black coal producers contribute a voluntary levy to the Coal21 Fund to support the development of low emission coal technology in Australia. The fund will raise $1 billion. Rio Tinto Coal Australia committed $6 million in 2010 and has committed $34.5 million to this fund since 2007. To date, the fund has committed more than $400 million to support specific low emission coal demonstration projects, $20 million for Queensland geosequestration studies, and $75 million for the Australian Low Emission Coal Council Research and Development Programme
Australian Coal Association Research Programme (ACARP)	Australian black coal producers contribute five cents per tonne of product coal to fund research and the development of technologies that lead to the safe, sustainable production and utilisation of coal. During 2010 this contribution was around $1.35 million. ACARP is currently funding a number of research projects designed to develop practical methods for estimating fugitive emissions from coal mining. There is also considerable research activity on the reduction of dust emissions from coal during transport to and storage at the major export terminals in Australia. More information about this and other research projects is available on the ACARP website.
The Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC)	The CO2CRC conducts research and development into carbon capture technologies and the geological aspects of carbon storage technologies. Its current focus is the Otway Project in Victoria, Australia's first demonstration of the deep geological storage, or geosequestration, of carbon dioxide. Rio Tinto Coal Australia personnel are on the board of the CO2CRC, playing a leading role in managing the operational aspects of the pilot project which has successfully demonstrated the injection and storage of 65,000 tonnes of carbon dioxide. This project has developed and proven monitoring techniques for geological storage of carbon dioxide and significantly advanced the understanding of the regulation of carbon dioxide storage
Global Carbon Capture and Storage Institute (GCCSI)	GCCSI has been established by the Australian Government to facilitate the deployment of commercial scale CCS demonstrations anywhere in the world. Rio Tinto is a foundation member of the GCCSI and has contributed, together with other members, to the development of its work programme.
Australian National Low Emission Coal (ANLECC); the New South Wales Clean Coal Council (NSWCCC) and the Queensland Clean Coal Council (QCCC)	Rio Tinto Coal Australia's Managing director was appointed to ANLECC, NSWCCC and QCCC. ANLECC developed the National Low Emission Coal Strategy for the Australian Government. This strategy has contributed towards the establishment of the Australian Government's $2 billion CCS Flagship Programme to support commercial scale demonstrations of CCS in Australia. The QCCC advises the Queensland Government on low emission coal initiatives in the state of Queensland.
Hydrogen Energy	In 2007 Rio Tinto joined with BP to create the Hydrogen Energy joint venture and announced the commencement of feasibility studies into three power generation projects equipped with carbon capture and storage. Currently Rio Tinto has a 50 per cent interest in the Hydrogen Energy California (HECA) project which is a 250MW Integrated Gasification Combined Cycle power plant with coal carbon capture and storage (CCS) fuelled by petroleum coke and coal. The joint venture is seeking additional investors. Subject to a decision by the joint venture to proceed, construction is expected to begin in late 2011 with commissioning commencing in 2014 and 2015. When operating, the plant aims to provide low carbon power to over 150,000 Californian homes.