Port Augusta solar thermal plant likely to be funded by $1 billion federal clean energy fund

A LARGE solar thermal plant at Port Augusta is likely to be one of the first projects supported by a $1 billion Clean Energy Innovation Fund, to be announced by the Federal Government today.

• Closing date of Port Augusta power stations extended
• Pt Augusta power stations, Leigh Creek coal mine to close
• Alinta ends Pt Augusta solar-thermal study

A LARGE solar thermal plant at Port Augusta is likely to be one of the first projects supported by a $1 billion Clean Energy Innovation Fund, to be announced by the Federal Government today.

Prime Minister Malcolm Turnbull and Environment Minister Greg Hunt will today reveal plans for the fund, which will invest up to $100 million per year in emerging technologies.

The announcement comes after the federal and state government were urged to back the development of a solar plan at Port Augusta, where hundreds of jobs will be lost when two coal-fired power stations close in May.

It is likely to cause tension with conservative elements in the Coalition, particularly those who have aligned themselves with former prime minister Tony Abbott.

“We are promoting innovation and new economic opportunities, enhancing our productivity, protecting our environment and reducing emissions to tackle climate change,’’ Mr Turnbull said last night.

“An example of a project could be a large scale solar facility with storage in Port Augusta.

“By offering innovative equity and debt products, the Clean Energy Innovation Fund can accelerate the availability of new technologies to transform the energy market, and deliver better value for taxpayers.”

American company SolarReserve had been seeking support for the development of a large solar thermal plant at Port Augusta.

The Abengoa solar-thermal plant near Seville, Spain. Pic: Bloomberg News

Similar projects in the United States have created about 1000 construction jobs, 50 ongoing roles and 4000 indirect jobs.

A delegation of federal MPs visited a large solar power station built by SolarReserve in the American state of Nevada last year.

About 450 workers will lose their jobs when Port Augusta’s power stations close in May. Coal mining operations at nearby Leigh Creek shut down last year.

In another slap down to former prime minister Tony Abbott, the government is also abandoning plans to abolish the Clean Energy Finance Corporation, once derided by Liberals as the “Bob Brown Bank”.

The $1 billion Clean Energy Fund will be managed jointly by the Clean Energy Finance Corporation and by the Australian Renewable Energy Agency.

The corporation was established by former Labor prime minister Julia Gillard as part of a deal with the Greens to keep Labor in power.

The Senate twice blocked attempts by Mr Abbott to abolish the corporation and the abolition Bill is technically a potential trigger for a double dissolution election.

Mr Turnbull sad the Clean Energy Innovation Fund would target early-stage clean energy projects that had trouble growing to the size and maturity needed to attract private equity.

The Clean Energy Innovation Fund will target projects such as large-scale solar with storage, offshore energy, biofuels and smart grids,’’ he said.

Deputy Prime Minister Barnaby Joyce said South Australians needed to have a conversation about whether to develop nuclear power, which he described as a clean, renewable source of electricity.

Mr Joyce backed the use of solar and wind energy if it was affordable for consumers.