South Australian coals are all low in rank and generally poor in quality, with difficult combustion characteristics. This circumstance makes the selection of a fuel source for future power generation difficult, requiring careful study and detailed analysis of the various alternatives. Combustion characteristics can have a significant effect on plant design and costs, and need early attention in any exploration and evaluation programme. The physical location of the deposits, often remote from established infrastructure and centres of population, is also a major factor in the ultimate cost of power at the poirl use.