Centennial Coal says modern-day coal-fired power stations should be considered for Australia, as old plants close and residents brace for higher electricity prices.
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Centennial underground mines in Lake Macquarie – Myuna at Wangi Wangi and Mandalong at Morisset – and its regional office at Fassifern, employ about 750 people.
“Eighty per cent of the coal produced by these mines is supplied, via dedicated conveyors and private haul roads, to Vales Point and Eraring power stations,” Centennial managing director and CEO Mick Cairney said.
These two plants are planned to close over the next 15 to 20 years, possibly sooner.
“If for whatever reasons our local power stations closed early, Centennial would direct our coal to the export market,” Mr Cairney said.
Industry and political insiders have been considering the future of energy and climate change, amid market moves towards renewables and gas and away from coal.
However, the Turnbull government has raised the prospect of using taxpayers’ money to help build new “high efficiency, low emissions (HELE)” coal-fired plants.
Mr Cairney said the government has “a significant role to play in providing the right environment and policy settings to foster private sector investment”.
“Unfortunately, for over a decade in the area of energy policy, there has been a high level of uncertainty, making it very difficult to make long-term investment decisions.
“If HELE coal-fired power stations are affordable, reliable and deliver low emissions, why shouldn’t they be considered when we replace retiring coal plants?”
Mr Cairney questioned why Australia wasn’t using this technology when it was being “rolled out across Asia, fuelled by Australian coal”.
Generators have expressed concern that they won’t get an adequate return on investment in new coal-fired plants, amid concern about the price of carbon.
But Mr Cairney said “government needs to provide national leadership and partner with the private sector to deliver affordable and reliable energy”.
Ten coal-fired power plants have closed in Australia since 2012, including Munmorah.
The Liddell and Bayswater coal-fired plants in the Upper Hunter are planned to close in 2022 and 2035 respectively.
