Victoria has an extensive brown coal resource, 202,000 Mt, of which 43,300 Mt is regarded as readily recoverable. This brown coal is located principally in the Latrobe Valley as thick seams and is being extracted at low cost primarily to support base-load electrical power generation. The high moisture content of the coal is partially off-set in many applications by the high reactivity of the coal and the generally low levels of potential pollutants such as ash, sulphur and nitrogen in the coal. Large scale development of this brown coal resource began in the 1920's. In addition to electricity generation, it is used for briquette production, carbonisation of briquettes to char and was gasified for town gas supply to Melbourne (1956 - 1969). The BCLV coal to oil pilot plant at Morwell is a major new initiative in the use of Victorian brown coal. Many other new developments are in place and emerging in the utilization of low rank coals. Examples of these developments are, the large-scale gasification of lignites in the USA, and value-added products such as bulk chars, solid fuels, activated carbons and coal-water mixtures. The Government of Victoria has created the Coal Corporation of Victoria to promote current sales of briquettes and to encourage further new industrial developments based on the State's brown coal resources, in particular the Loy Yang coalfield. The Coal Corporation also has a vigorous product and process oriented research and development Programme.