NSW’s Vales Point coal-fired power station set to receive $11m federal government grant to upgrade

NSW’s Vales Point coal-fired power station is set to receive an $11 million federal government grant so it can produce electricity with less coal — and provide additional reliable energy when demand is high.

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EXCLUSIVE

NSW’s Vales Point coal-fired power station is set to receive an $11 million federal government grant so it can produce electricity with less coal — and provide additional reliable energy when demand is high.

The Daily Telegraph can also reveal that the head of the company behind a proposed coal-fired plant in Queensland has condemned comments by Opposition Leader Anthony Albanese that the private sector wouldn’t touch the Collinsville project with a “barge pole”.

Shine Energy CEO Ashley Dodd said he was in negotiations with three major offshore energy companies about taking an equity stake.

“I think Anthony Albanese should get ready to grab a pole,” Mr Dodd said.

As the political divide over the future of coal-fired power deepens, The Telegraph has learnt the Vales Point station at Lake Macquarie is in line to receive $9.8 million of public money for a turbine upgrade plus $1.2 million for high-pressure heaters.

Vales Point power station at Lake Macquarie. Picture: AAP’s Ashley Feder

The 660 megawatt plant’s owner, Sunset Power International — which trades as Delta Electricity — will inject a further $9 million of its own cash.

The improvements will increase Vales Point’s efficiency by 1 per cent and mean the plant can reliably deliver up to 690MW by going into overload during “system events”, Delta CEO Greg Everett said yesterday.

Sunset chairman Trevor St Baker said it had advice the $11 million grant was going ahead.

Nationals backbencher Matt Canavan — who was a Cabinet minister until last week — also said he understood the government was “taking that forward”.

The recent energy deal between Prime Minister Scott Morrison and NSW Premier Gladys Berejiklian commits the Commonwealth to backing three NSW projects through its Underwriting New Generation Investment (UNGI) program. There are only three NSW projects on the current shortlist; Vales Point is one.

Energy Minister Angus Taylor said: “We’re working through short-listed projects.”

Meanwhile, Shine Energy’s Mr Dodd said Mr Albanese should be “ashamed” over his comments that supporting new coal-fired power was like supporting unicorns.

Shine Energy chief executive Ashley Dodd. Picture: Kelli Cohen

Shine, which describes itself as a “First Nation Traditional Owner company”, has received $4 million from the federal government for a feasibility study into its proposed one-gigawatt plant at Collinsville. It said the project would provide a pathway to “economic self-determination” for the local Birri people.

“Obviously Anthony Albanese doesn’t support unicorns, he doesn’t support traditional owners and he doesn’t support closing the gap,” Mr Dodd said.