Currently raw brown coal is fired in the Latrotx; ‘ahcc th,iki~, Lanying with it two major penalties, (a) boiler efficiency of 65 – 70 per cent (in terms of GCV), (b) much higher boiler cost than for black coal. Drying the coal, in energy-efficient, and cost-efficient manner, opens the way to efficiencies of order 88 per cent and enables the lower cost black coal type boilers to be used. With the higher boiler efficiency goes much higher combustion temperatures and the effect of this on radiative heat transfer is a major factor in reducing boiler cost. In a fluidised-bed combustor the temperature is controlled to 800C – 900C. In a pulverised fuel combustor higher temperatures are however achieved and can increase boiler fouling due to the salt content of the coal. This is a problem which needs to be solved. Victoria has the prospect of lifting efficiency from 28/29 per cent to 35 per cent, of reducing carbon dioxide output correspondingly and reducing cost of power stations. So far as gasification is concerned, efficient removal of liquid water from the coal is important to the overall efficiency.