Morrison kicks decision on Queensland coal plant well down the road
- Written by Michelle Grattan, Professorial Fellow, University of Canberra
The government has given modest comfort to the coal lobby within its ranks by including a NSW upgrade project in its short list for underwriting, and promising to study the feasibility of a coal-fired power station in Queensland.
The study would evaluate projects in north and central Queensland. These “include but are not limited to a new HELE coal project in Collinsville, upgrades of existing generators as well as gas and hydro projects”.
The feasibility study effectively kicks the issue down the road, while giving the Queensland Nationals something to trumpet, and reducing the pressure from them on Prime Minister Scott Morrison.
Resources Minister Matt Canavan, who is from north Queensland, tweeted: “Power prices are too high in North Queensland. That’s why we are backing new power projects, including coal, that will increase supply and bring down prices”.
Queensland Nationals George Christensen said: “The Morrison Liberal National government has approved funding to take the plan for a clean coal-fired power station in Collinsville towards the ‘shovel ready’ stage.”
Former Nationals leader Barnaby Joyce, a loud advocate of a new Queensland coal-fired power station, tweeted, “So we have got ourselves a Coal Fired power station for Qld. Very good”.
Twelve projects have been ticked under the Underwriting New Generation Investment program, although there will be no contracts before the election. Morrison said the projects would be looked at in greater detail before being bedded down for underwriting.
He said the selection – from 66 applications - had been “fuel agnostic”. Five involve gas and six are for pumped hyro - including the Tasmanian “Battery of the Nation” project that was previously announced, to send renewable energy to Victoria.
The coal project is a Delta power station upgrade at Lake Macquarie. Morrison described it as “very small”.
“The projects deliver a balance which includes renewable, affordable and reliable power for families and businesses and ensure we meet our 2030 targets”, Morrison, Energy Minister Angus Taylor and Canavan said in a statement.
They involve a combined capacity of 3,818 MW of new generation.
“Importantly, the emissions intensity of individual projects was considered when finalising the shortlist,” the statement said.
“The weighted (by capacity) emissions profile of the shortlist is around 0.27t CO2-e per MWh, compared to the 2018 NEM average of 0.82 t CO2-e per Mwh.
"This is around one third the emissions intensity of the National Electricity Market and reflects the significant new pumped hydro and low emissions gas projects in the shortlist”.