Senior Turnbull government ministers are publicly at odds over the timing of new investment in coal-fired power – with the resources minister suggesting Asian and domestic investors “are very interested” and could build a plant within three years, and the energy minister arguing any investment would be “a long way off.”



The resources minister, Matt Canavan, told 2GB on Monday that proponents of “clean” coal-fired power had told him a new power station could be operational in Australia within three years.

“There are people that are very interested,” Canavan said. “There are people who are interested in selling their technology and there are people that are interested in adopting it and owning a station here.”

“They’re not only from Asia, there are some Australian investors interested too, so they’re the people we’re talking to over the next couple of months.”

The energy minister, Josh Frydenberg, struck a noticeably different tone when addressing the issue at a press conference with the prime minister and treasurer in Canberra on Monday.

Frydenberg confirmed that he had met some investors interested in pursuing clean coal in Australia but any such move would be “a long way off.”

The energy minister continued to argue the government had to pursue a technologically neutral approach. “We can’t made a single bet because that would be ruling out certain options that would be available to us,” he said.

Frydenberg said coal, gas and renewables would all be required. “I am excited what is happening in renewables and also, thermal generation is so important.”

Canavan on Monday repeated a previous signal that the Northern Australia Infrastructure Facility could co-invest in a new coal-fired power plant.

The Clean Energy Finance Corporation has issued a number of public warnings that new coal fired power plants will not get off the ground without substantial government guarantees.

In late February, the CEFC’s outgoing chief executive, Oliver Yates, said a new coal-fired plant was not “financeable” without the government agreeing to indemnify the project against the future risk of a carbon price being introduced and against the cost of delays in the project prompted by likely community protest action.

The government has already indicated that it intends to change the CEFC’s rules to allow for investment in new coal-fired power. Currently, the CEFC cannot invest in any project that does not reduce emissions by 50% or more on the average across the national electricity market.

That prohibition is contained in CEFC investment guidelines, which means it may be possible to change without parliament’s support. The CEFC legislation, enacted by the previous Labor government, rules out funding nuclear power and carbon capture and storage and will require Senate support to change.

The government met industry representatives, including Manufacturing Australia, Australian Industry Group, the Energy Users Association of Australia and Major Energy Users Association on Monday, as well as representatives of large gas users, Incitec Pivot, Adelaide Brighton, Qenos, Australian Paper and BOC in Canberra.

The groups warned the government there was an urgent need to tackle the barriers to domestic gas supply.

Monday’s meeting followed an emergency summit convened by the prime minister with representatives of the LNG industry two weeks ago after warnings were issued that Australia could face energy shortages by next summer in the absence of more gas for the domestic market.

The government has warned LNG producers it is prepared to use the commonwealth export powers “in the national interest” if the companies did not deliver more supply to the domestic market.

Ministers will meet with gas pipeline operators later this this week ahead of further talks between the government and LNG producers.