Clive Palmer company avid fan of CSG

STRIDENT criticisms of coal-seam gas by prime ministerial aspirant Clive Palmer have been undermined.

STRIDENT criticisms of coal-seam gas by prime ministerial aspirant Clive Palmer have been undermined by the disclosure that his own major business has become an enthusiastic new user and supporter of the fuel.

Mr Palmer's wholly owned Queensland Nickel, a major refinery near Townsville, describes coal-seam gas as "safer" and "environmentally friendlier"

Queensland Nickel's web site states: "Coal-seam methane gas has recently been introduced to various parts of the refinery.

"The gas is an environmentally friendlier and safer energy source, reducing CO2 production and using new safety-instrumented systems and burner management systems.

"There are plans to expand the use of coal-seam methane gas in the plant in the future."

Queensland Nickel lost $58 million in the financial year ended June 30, 2012, and Mr Palmer has led a major cost-cutting drive in a bid to reduce his losses, which are being compounded by a slumping global nickel price.

The plant is a big emitter of carbon and its operation has traditionally been dependent on significant volumes of oil and coal. The transition to gas at the refinery is part of Mr Palmer's cost-cutting campaign.

As part of his electoral pitch for his Palmer United Party, which is standing candidates in every seat for the upcoming federal election, the tycoon yesterday renewed his scepticism about coal-seam gas and raised fresh concerns about its environmental and health impacts.

Mr Palmer has previously made scathing criticisms of coal-seam gas, warning at a political forum in Canberra in 2011: "Coal-seam gas technology currently used in Australia is lethal and will kill Australians, poison our water table and destroy the land. The risk if they don't get that right is the contamination of the water table with things like arsenic and other carcinogens.

"We don't want that to happen because that affects stock and it could affect human life when we're eating the stock and drinking the water. I think it will be devastating . . . and that's what we've got to worry about."

Mr Palmer, who is attempting to attract support from voters opposed to coal-seam gas in rural NSW, said in a statement yesterday: "Let's take a breather on the coal-seam gas industry. Lives are a lot more important than the extraction of coal-seam gas."

Referring to a report this week by NSW chief scientist Mary O'Kane, who raised regulatory concerns about coal-seam gas, he said: "All governments and companies involved should put their personal interests on hold and support a thorough investigation into these concerns."