Australia coal industry to repair climate image

CANBERRA (Reuters) - Australia's $40 billion coal industry, facing accusations it is a climate change culprit, launched an advertising campaign on Wednesday to win back public support.

The Australian Coal Association said it would run national newspaper advertisements and a website, www.newgencoal.com.au, explaining that the greenhouse intensive industry was working hard to capture and store its carbon emissions.

"This is a vital public debate and it is important that the public have access to accurate and scientifically-verified information on climate change and the facts about low emissions technologies," association Executive Director Ralph Hillman said.

Australia is the world's biggest coal exporter and relies on coal for 80 percent of its electricity. The country produces 1.5 percent of global greenhouse emissions and coal accounts for around a third of national greenhouse output.

Carbon dioxide and nitrous oxide are released when coal is used in electricity generation or industrial processes such as steel making and cement manufacture.

The 24-member Australian Coal Association counts Rio Tinto Ltd/Plc, Swiss miner Xstrata, Gloucester Coal, Macarthur Coal and Centennial Coal.

Hillman said the industry was working hard to develop so-called "clean coal" technologies scrubbing carbon from its emissions and pumping them into underground rock layers in a process known as geo-sequestration.

But the term clean coal was confusing, he said, because in the past it was used to describe other coal energy processes. The advertising and internet campaign would instead use the term "new-generation coal technologies."

Australia's government, anxious to support the country's biggest export earner, in September said it would set up a A$100 million ($66 million) carbon capture research institute. The government will also begin carbon emissions trading from 2010.

($1=A$1.52)

(Reporting by Rob Taylor, editing by Sanjeev Miglani)