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CS Energy says new coal power stations not viable

Thursday, 16 Feb 2017 14:55:22 | Hayden Cooper

The Callide Power station is one of Australia's most advanced coal-fired power generators. (ABC News: Hayden Cooper)

One of Australia's major electricity generators, CS Energy, has dismissed Malcolm Turnbull's call for the construction of new coal-fired power stations.

Key Points

  • Malcolm Turnbull wants new ultra super-critical coal-fired power stations
  • CS Energy chief executive Martin Moore surprised if any new coal-fired plants will be built
  • Government-owned CS Energy runs advanced coal-fired power stations in Qld
  • Carbon capture and storage trial successful but technology too expensive

"It would surprise me greatly if there were ever any more coal-fired technology built in Australia," chief executive Martin Moore told 7.30.

He said his state government-owned company has "no intention" of building new, more efficient coal-fired plants.

The Prime Minister has been lobbying for ultra super-critical power stations to be built in Australia, arguing coal will remain a crucial part of the nation's energy mix.

Many of the new plants are being built in Asia.

New technology 'not game changing': CS Energy

Callide Power station with mounds of coal Photo: The Callide Power station is one of Australia's most advanced coal-fired power generators. (ABC News: Hayden Cooper)

CS Energy operates two of the most advanced coal-fired generators in Australia, the super-critical Kogan Creek and Callide C plants.

It produces about a third of Queensland's electricity and also exports some supply into New South Wales.

Mr Moore said the new technology can improve coal-fired emissions by about 37 per cent when compared with the dirtiest brown coal stations, such as those in Victoria's Latrobe Valley.

But it delivers a smaller improvement compared with super-critical stations, like those operated by CS Energy in Queensland, which are already 25 per cent cleaner than brown coal.

"It's not game-changing," Mr Moore said.

"You've still got to think that ultra super-critical produces twice the emissions of gas-fired technology."

He says building an ultra super-critical plant would cost about $2billion dollars, and he doubts even government subsidies would make a difference.

"These assets have a plant life roughly of 40 years, so it's a very very big long-term bet."

"I think it would be a very courageous board that would invest in coal-fired technology in Australia."

The Minerals Council of Australia maintains the new highly-efficient coal power stations are commercially viable and needed in Australia.

"I think we need to treat some of that commentary with a grain of salt," chief executive Brendan Pearson said.

"The bottom line is that investment banks like Morgan Stanley have highlighted the benefits of this technology and said it's cost effective."

"They're being built all around Asia… so I think it's logical provided our policy settings are sensible that this will play a part in the future."

Carbon capture and storage too expensive: Martin Moore

CO2CRC Sign at entry of Otway CCS project, Victoria Photo: A carbon capture and storage facility in the Otway Basin, which was successful but too costly. (Babs McHugh: ABC Rural)

CS Energy has also cast doubt on carbon capture and storage technologies in the power generation sector.

It ran a successful trial two years ago at another of its Queensland plants, which involved capturing emissions, converting them to liquid and storing them in Victoria's Otway Basin.

But Mr Moore says the technology is too expensive.

"It's possible to retrofit this to existing coal-fired plants but commercially the numbers don't stack up," he said.

"I think that technology may well be bypassed."

The International Energy Agency says there are only 15 examples in the world where carbon capture and storage is operating commercially.

AustraliaPlus


 

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