Collinsville (Shine Energy) power station
|This article is part of the CoalSwarm coverage of Australia and coal|
Collinsville (Shine Energy) power station is a proposed 1000 MW coal plant to be located at or near the now closed Collinsville power station. The plant has been proposed by Shine Energy Australia, a company with no coal power plant experience.
The map below shows the location of the now closed Collinsville power station near Collinsville, Queensland. The location of the proposed new plant is likely to be at the same site or nearby.
According to Shine Energy, a concept study for its proposed coal plant was undertaken by the enginnering company WSP and a business case for the project completed at the end of 2018.
On March 26, 2019 Prime Minister Scott Morrison announced that 12 projects had been short-listed for possible funding from the Underwriting New Generation Investments program including a coal plant upgrade proposed by Delta Electricity, a company co-owned by Trevor St Baker.
While the Collinville plant was not on the shortlist, Morrison announced that the "government will conduct detailed evaluation and feasibility of projects in North and Central Queensland through the Underwriting New Generation Investments program. These projects include but are not limited to a new HELE coal project in Collinsville, upgrades of existing generators as well as gas and hydro projects." In July 2020 the Labor Party called for an inquiry into the grantmaking process that resulted in Shine obtaining a grant two days after it was publicly announced.
The Australian reported that "the proposed project has received the initial backing of resources giant Glencore which said it would provide Shine Energy with 'project management and governance expertise during the feasibility phase of the project'". Shine Energy has no experience completing any energy project or feasibility study for one.
In June 2019 Shine Energy CEO Ashley Dodd said that the company planned to raise A$2 billion to build the proposed plant by October 2020. In October 2019 Senator Matthew Canavan, Minister for Resources and Northern Australia, expressed support for a feasibility study for the project. In August 2020 Shine received an initial payment of A$3.6 million to conduct a feasibility study.
In February 2022 it was reported that the project's sponsors were touting Collinsville as a HELE project, or high efficiency with low emissions, that would operate only in response to demand. Tim Buckley of IEEFA criticized such a project as “totally unbankable [without] massive ongoing government subsidies and a massive ongoing exemption from carbon pricing."
Planet imagery from November 2022 showed that no changes had occurred at the location since the feasibility study funds were awarded in February 2020.
Criticism of Grant for Feasibility Study
In February 2020 the Australian government announced that it was awarding A$4.4 million to Shine Energy for a feasibility study for the project. Shine Energy's goal for achieving FID is mid-2021. In June 2020 the Indigenous Birri and Widi directors of Shine Energy said they had yet to received funds for a feasibility and questioned whether they had been used by the government to win recent state elections. Shine's chief executive Ashley Dodd accused the Morrison government of trying to "white clad" the company by seeking to put an Anglo Saxon in charge of it. In June 2021 it was reported that the national government responded to a Freedom of Information Act request by RenewEconomy by releasing a copy of the grant award in which most of the information was redacted.
Audit of Shine Energy Grant
In March 2021 the Australian National Audit Office (ANAO) found that the Shine Energy grant application met only 71% of government criteria. The ANAO also found that Shine would not be able to produce a study until 2023 versus its stated goal of mid-2021. Later, government officials admitted that despite being awarded the A$4 million grant, Shine Energy may still be unable to deliver a bankable feasibility study. 
A shortage of water in the area is one obstacle to building the plant. Shine is indigenously owned and its chief executive Ash Dodd stated in April 2020 that Shine was opposed to taking water from the proposed Urannah Dam because "we as Birri and Widi traditional owners stand opposed to the Urannah Dam project as it will have a major environmental impact on our sacred rivers and all water rights belong to our people.”
- Sponsor: Shine Energy
- Parent company: Shine Energy
- Location: Mannering Park, New South Wales, Australia
- Coordinates: -20.5450506, 147.8045568 (approximate)
- Status: Pre-permit development
- Gross capacity: 1000 MW
- In service: 2023
- Coal type: Black
- Coal source: Queensland
- Source of financing:
Brisbane Technology Park,
Clunies Ross Court,
Eight Mile Plains QLD 4113
Phone: 07 3188 9319
Articles and Resources
Related GEM.wiki articles
- "Indigenous generator seeks carbon promise", The Australian, March 27, 2019.
- Prime Minister Scott Morrison, "Delivering affordable and reliable power", Media Release, March 26, 2019.
- Paul Karp, Labor asks for inquiry into how Shine Energy secured $4m grant for Collinsville coal plant study, Energy Central, Jul. 27, 2020
- Shine Energy gets 'first milestone payment' of $3.6m grant for Collinsville coal plant, The Guardian, Aug. 26, 2020
- AUSTRALIA: $2BN TARGET FOR COMPANY BEHIND BOLD INDIGENOUS POWER PROJECT, IEA, Jun. 11, 2019
- Canavan 'desperate' for coal-fired power in pledge to back projects, Sydney Morning Herald, Oct. 30, 2019
- Experts sceptical of Shine Energy’s proposed ‘flexible’ coal power station, The Guardian, Feb. 13, 2022
- Ben Smee, Proposed Queensland coal-fired power plant under cloud over emissions and financing, The Guardian, Apr. 23, 2020
- Shine powers towards financial close on coal plant, Industry Queensland, Feb. 11, 2020
- Indigenous-run firm behind Collinsville coal-fired plant says Coalition used it 'as a pawn', The Guardian, Jun. 12, 2020
- Department refuses to disclose details of Collinsville coal study approval process, RenewEconomy, Jun. 29, 2021
- What the ANAO’s evisceration of Shine Energy means for Angus Taylor and coal, The Mandarin, Mar. 22, 2021
- Michael Manzengarb, Government officials say they knew Collinsville coal plant study could fail, Renew Economy, Mar. 23, 2021
- Michael West, "Shine Energy: behind the push for a new coal-fired power station", MW, June 20, 2019.