Yallourn aims to power on to 2050

THE Andrews Government is being asked to extend the licence for Australia’s second largest coal mine amid growing doubts about whether its renewable energy target will force it to shut down.

It can be revealed Energy Australia, owner of the Yallourn power station which provides nearly a quarter of the state’s electricity, has applied to extend its licence from 2026 until 2050.

Yallourn has enough coal to continue operating until 2032 but high-level industry figures believe it may have to close earlier because of the Government’s promise to have 40 per cent of power coming from renewable sources by 2025.

Energy Australia’s energy executive Mark Collette told News Corp that “policy and market settings may impact our approach” to operating until 2032.

“We are currently assessing the potential impact on our business from the introduction of a Victorian Renewable Energy Target and the possibility of a National Energy Guarantee,” Mr Collette said.

“Right now, our plan is to continue to invest in Yallourn and our people for so long as the plant is needed, so our customers continue to receive reliable, affordable electricity supply.”

The company has asked for its licence to be extended until 2050 to give it time to rehabilitate the mine once it closes.

A Government spokesman confirmed the extension application had been made and that the departmental earth resources regulation team would provide advice to Resources Minister Tim Pallas soon.

The licence extension looms as a tricky political decision for the Andrews Government, which has faced significant pressure from the Greens and environmental groups to end Victoria’s reliance on coal.

But the Government will also want to avoid a repeat of Hazelwood’s closure last year, which forced up power prices and played into the Opposition’s cost-of-living attack on Labor.

Premier Daniel Andrews did not deny Yallourn would close before 2032 when asked directly last year.

“Coal is going to continue to be a very important part of baseload electricity in our state and indeed in other states,” Mr Andrews said at the time.

Mr Collette said Energy Australia was “working constructively” with government bureaucrats on the proposed licence extension.

“The application seeks to extend mining operations from the scheduled expiry of the extraction licence in 2026 until 2032 when the power station is planned to close,” Mr Collette said.