Supporting Victoria’s Brown Coal Transition: From Emissions to Solutions

Victoria is home to one of the world’s largest deposits of brown coal (lignite), a resource that continues to power most of the state’s electricity grid. However, as Australia transitions to low-emission energy, the legacy of coal looms large, both economically, environmentally, and politically.

The challenge? How to responsibly transition this abundant resource away from high-emission energy and into sustainable, value-added uses.

At ECT, we believe that lignite’s next chapter is less about energy and more about agriculture.

From Burden to Benefit

Brown coal has long been seen as a problem to solve. It’s high in moisture, emits heavily when burned, and has few export options. But beneath those challenges lie untapped advantages:

• Porous structure: Excellent for nutrient binding
• High organic content: Ideal for soil enrichment
• Abundant and low-cost: Readily available in Victoria

With the right treatment, lignite can be repurposed from an emissions liability into a climate and productivity asset.

Enter: COLDry Fertiliser

Developed by Environmental Clean Technologies and ESG Agriculture through the Zero Quest joint venture, COLDry Fertiliser blends lignite with urea to create a carbon-rich, slow-release nitrogen fertiliser.

This transforms lignite into a soil health input, delivering:

• Improved nutrient efficiency
• Reduced nitrogen emissions
• Added organic carbon to the soil
• A new revenue pathway for Victoria’s lignite industry

And all without combustion.

Why It Works

COLDry’s patented low-temperature (<40°C) drying technology:

• Preserves nitrogen
• Stabilises carbon-rich lignite
• Produces uniform, granulated fertiliser
• Enables scalable, zero-emission manufacturing

Unlike traditional uses of coal, COLDry doesn’t burn it. Instead, it reforms and repurposes it to meet agricultural needs.

The Emissions Case

Every tonne of urea fertiliser typically results in:

• 1.37 tonnes of CO₂-e emissions
• Mostly from nitrous oxide (N₂O), a gas 300x more potent than CO₂

By contrast, blended lignite-urea fertiliser:

• Cuts N₂O emissions by 64%
• Reduces leaching by 59%
• Adds stable carbon back into the soil
• Avoids combustion entirely during production.

This solution repurposes a soon-to-be-stranded resource to create a valuable product that regenerates degraded soils and reduces emissions on the farm.

A Just Transition for Victoria’s Coal Communities

As coal-fired power exits the market, communities in the Latrobe Valley face an uncertain economic future. COLDry Fertiliser presents an opportunity to:

• Create new industries based on existing resources
• Retain jobs and infrastructure in mining and processing
• Shift from combustion to soil regeneration

Instead of walking away from Victoria’s lignite reserves, we can pivot them toward sustainability.

Made in Australia, for Australian Farms

The first batch of COLDry Fertiliser was produced at our Bacchus Marsh facility, using Victorian lignite. This local production:

• Reduces supply chain dependence
• Cuts freight emissions
• Keeps value creation within Australia

The goal: scale to 30,000 to 50,000+ tonnes per year, supporting regional agriculture and fertiliser security.

A New Path for an Old Resource

Brown coal’s story doesn’t have to end with power generation. With innovation, it can support:

• Food production
• Emissions reduction
• Soil restoration
• Economic renewal

And with tools like COLDry Fertiliser, that future is already taking shape.

Want to Be Part of the Transition?

Whether you’re a grower, investor, or policymaker, we’d love to connect.

Email: [email protected]

References:

• Victorian Resources Reports – State Government of Victoria
• Zero Quest Project Presentation