HRL claims it will generate 350 jobs in the construction phase. However, most of these jobs would be located in China and provide little to no social benefit for locals in the Latrobe Valley. If HRL attempts to pursue coal mining in Driffield, it will have a major local social impact as it would displace local dairy farmers and other members of the community, potentially leading to social dislocation in the Gippsland region, depending on the significance of those industries. Local dairy farmers have already voiced concerns about the uncertainty that HRL's mining license has had over their farm, as they have not known how long they have a future in the region.

Climate change is a major human rights issue as it contributes to resource scarcity and attacks many communities' rights to a happy life and livelihood. In 2009, Australian climate scientists wrote to every coal-fired power station owner in the country, putting them on notice that their assets could be held directly responsible for climate impacts in Australia and around the world. HRL's carbon pollution will exacerbate these impacts.

There are various environmental concerns attached to this program, such as:

• At full scale, this project would add at least another three million tonnes of CO₂ per year into the atmosphere. HRL is claiming to use "clean coal", however based on calculations from HRL's works approval application to the EPA, the carbon pollution from the gasified brown coal used in the plant may be as high as 0.91 tonnes CO₂/MWh, worse than some black coal plants
• The power station would also use 2GL of water annually from the already stressed and deteriorating Latrobe River and Gippsland Lakes
• The plant would put more dangerous pollutants into the air - including particulates and other contaminants known to cause cancer and to affect the lung development of children

• There are many reasons to suggest that the AUD100 million Federal Government grant is illegitimate. The funding deed was signed on 9 May 2008 and a condition was that the project commenced within three months of the deed being signed. There is no evidence of HRL's proposal commencing by 9 August 2008. The grant itself was awarded to support a 400 megawatt power plant that was supposed to be delivering power by 2009. This clearly has not eventuated. The expert panel assessing HRL's application for the federal grant were also aware that the project would not be economically viable at less than 400 megawatt in size

• To date, none of the AUD100 million grant has been provided because HRL have, after more than four years, still not met the milestones to access these funds. In a hearing of the Australian Senate Economics Committee, officials from the Department of Energy said that HRL would be given until the end of 2011 to meet the grant's milestones, which include reaching full financial closure and demonstrating a pathway to how the power plant would operate with carbon capture and storage

• HRL have repeatedly failed to meet deadlines for project milestones to access the AUD100 million federal grant and have been given at least three extensions from the Federal Government

• The costs of the project may officially be AUD1.3 billion, but a concultancy who conduct economic modelling on energy (ACIL Tasman) place the cost per kilowatt of IDGCC at AUD3227, suggesting project costs may ultimately be AUD1.9 billion

• According to documents released under Freedom of Information laws and available here, an expert panel reviewing HRL's application for funding in 2006 were concerned of numerous technical and financial risks that the project carried. The panel were well aware that HRL's project would need to proceed at at least 400 megawatt in scale in order to be economically viable. After receiving approval from the Victorian EPA to proceed at only 300 megawatt, Energy Minister Martin Ferguson announced a review of the Government's invovlement in the project, describing the funding as a "legacy grant".