Plans to build a biomass energy plant and solar farm at WA’s only coal mining town have been abandoned, with $60 million earmarked for the projects now allocated to a job creation strategy.

Collie’s coal workers are nervous about their future given speculation about when the town’s ageing State-owned power station will close.

Some estimate it will be as soon as 2025, though the Shire of Collie recently stressed that one of the town’s two mines, Premier, is contracted to provide coal to utility Synergy until at least 2030.

The State Government seeks to diversify the town’s economy, including stimulating tourism in the forest and farmland-rich area.

It revealed on Thursday that next week’s State Budget will show $60 million has been re-allocated to establishing the Industry Attraction and Development Fund, with $10 million going towards a plan to establish Collie as WA’s premier “adventure trails town”.

“The Government believes renewable energy could still have a future in Collie but it needs to be part of a broader economic development strategy,” the McGowan Government said in a statement.

AAP