Case for plant to be built for coal

A NEW “high-efficiency, lowemissions” coal-fired power station south of Townsville has received its strongest backing from the Federal Government yet, with millions to be spent on a business case for the project.

The Morrison Government will today announce it will spend up to $4 million on a business case for the plant at Collinsville, about 250km south of Townsville.

The funding will come from a $10 million election commitment to support new energy generation in central and North Queensland and represents the Government’s strongest show of support for thermal coal after it was a divisive issue at the last federal election. Indigenous-owned Shine Energy, which has proposed to build the plant, will prepare the business case to determine if the project is commercially viable.

If it does get the tick of approval, it will be the first HELE coal fired power plant in the country.

The company has estimated about 2000 jobs would be created during construction with another 600 once operations begin, with a focus to be put on indigenous employment.

Energy Minister Angus Taylor said an independent strategic study had raised concerns about “system strength” in the region, making new “synchronous generation” a priority to ensure high-energy businesses such as aluminium smelters could operate.

“Our plan to unlock investment in new, reliable generation capacity will increase competition, keep the lights on, and lower prices to better support our commercial and industrial sector so they can employ more Australians and remain internationally competitive,” he said.

Queensland has the youngest fleet of coal fired power stations in Australia, and the construction of a new one would go against the State Government’s 50 per cent renewable energy target.

The announcement comes just days after the Collinsville project’s biggest backer in the Government, Senator Matt Canavan, resigned as Resources Minister during a Nationals party leadership dispute.

The Morrison Government will also announce $2 million for a pre-feasibility study for a proposed 1.5 gigawatt pumped hydro-electric plant located between Collinsville, Proserpine and Mackay.

Deputy Prime Minister Michael Mccormack said the Government was committed to supporting projects that drove prices down and bolstered system strength.