Election 2022: Divisions deepen on coal future

Regionalisation Minister Bridget McKenzie has backed the construction of new coal-fired power stations to ensure energy supply reliability.

Barnaby Joyce and Scott Morrison in Rockhampton, Queensland, on Wednesday. Picture: Jason Edwards

Regionalisation Minister Bridget McKenzie has backed the construction of new coal-fired power stations to ensure energy supply as Scott Morrison pulls the plug on a proposed coal-fired plant in Queensland.

During an address to the ­National Press Club, Senator McKenzie said it was the “government’s position” to continue to build coal-fired power stations that employ carbon capture and storage technology.

“That’s a government position, when we have carbon capture and storage technology employed, then we actually lower the emissions significantly of that type of power generation,” Senator McKenzie said.

“That is absolutely something that we continue to support.

“If it is going to be a coal-fired power station that is much lower in emissions because we’re ­employing carbon capture and storage technology then why wouldn’t we support it?”

Senator McKenzie said coal-fired power stations would continue to play an important role in Australia’s energy mix, warning energy reliability would be under threat if the industry shut down prematurely.

Amid divisions within the ­Coalition over its climate change policy and net-zero targets, the Prime Minister signalled he would not provide any more money to a project in Collinsville despite his commitment at the last election.

The Australian revealed in March that executives at Shine Energy were considering walking away from the project in Collinsville after a request for an extra $2.5m was not included in the budget. The government has provided $3.3m to fund a feasibility study into the coal generator in central Queensland. However, executives threatened to walk away from the project if it did not receive more funding by the end of February.

“If we have not received a decision by (February 2022), Shine Energy will implement option one: close the project,” chief executive Ashley Dodd wrote in the email, which has been seen by The Australian.

Shine ­Energy had asked for extra funding to complete the feasibility study and for the project to be underwritten by the government.

The coal-fired station proposal was pushed by the Nationals during the 2019 election campaign. The party received large swings in coal electorates, including Capricornia, Flynn and Herbert.

Mr Morrison confirmed on Wednesday that the future of the project would be “up to the proponents” and argued that his government had already met every commitment it made during the last election.

“We met every commitment we made to that project which I outlined at the last election,” he said. “We have met every commitment that I pledged to do at the last election in relation to that project. Every single commitment we gave, we met.”

Senator McKenzie also insisted the National Party was committed to the government’s net-zero pledge by 2050, after Queensland senator Matt Canavan claimed the target was “dead”. She argued the target would be met in a way that protected the “industrial base”.

“We’ll be moving towards net zero by 2050, but a technology not taxes approach,” she said.