Morrison under fire over coal power

The proponent of a new coal-fired power generator will publicly condemn Scott Morrison if there is no money in the federal budget to support construction of the project.

The Nationals used the proposed coal-fired power station as part of its campaign in Queensland in 2019, with the government receiving large swings in coal electorates.

The proponent of a new coal-fired power generator in Collinsville will publicly condemn Scott Morrison if there is no money in the federal budget to support the construction of the project, in a move that could dampen Coalition support in central Queensland at the federal election.

The Australian understands Shine Energy executives are running out of patience at the government’s refusal to commit to supporting the project beyond a $4m feasibility study and believe regional Queensland voters should know where the Prime Minister stands on the issue ahead of the election.

Sources close to the company say an “options paper” has been given to senior government figures outlining three ways the ­Coalition could help advance the project in the March 29 budget.

There has been no feedback from the government on the options paper, with most ministers reluctant to appear supportive of a new coal generator, given the global shift towards renewables and pro-climate independents targeting Liberal MPs in Sydney and Melbourne.

The Nationals used the proposed coal-fired power station as part of its campaign in Queensland in 2019, with the government receiving large swings in coal electorates including Capricornia, Flynn and Herbert.

In 2019, Shine Energy asked for $10m of government funding under the Underwriting New Generation Investments program. Instead, the Department of Industry, Science, Energy and Resources offered the company $4m to undertake a feasibility study to assess the project’s viability.

Documents submitted to government as part of the feasibility study say the proposed power station would be “flexible enough to respond to the solar cycle and fluctuations in wind generation levels. (The coal plant) will be designed to ‘load follow’ and reduce its generation output to low levels allowing for maximum utilisation of solar generated electricity (reduce ‘solar spill’) and shut down more frequently.

“Existing national energy market coal generators cannot do this and in attempting to do so are being pushed past their operational limits, resulting in more out­ages, reduced operating lives and accelerated closures.”

The documents also said the project could underpin a carbon storage hub in the Galilee Basin “which could accelerate emissions reduction while extending the life of existing coal generation assets ensuring energy security. Batteries and pumped hydro are energy storage technologies that will manage short-term (one to three days) reduction in generation levels from wind and solar but cannot manage longer duration events.”

The manoeuvring from Shine Energy comes as the Nationals move to increase the focus on new coal and gas developments ahead of the election as the war in Ukraine threatens energy prices and supply.

Nationals senator Matt Canavan, architect of the pro-coal campaign in Queensland in the 2019 election, said the “Ukraine invasion has shown why we need to protect our own energy security”.

“The more coal and gas we produce, the harder things will be for (Vladimir) Putin.

“More fossil fuel production will lower energy ­prices. Higher energy prices help Putin fund his barbaric war,” he said.

“We cannot afford to sleepwalk into Europe’s vulnerable position so we should be building new coal-fired power stations and exploring for new oil and gas basins now.”

Resources Minister Keith Pitt is pushing for more coalmines and gas fields to be approved to assist with meeting the world’s energy needs.