STRIKE OIL LIMITED

The Hon. M. PARNELL (15:12): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about a proposed coal-fired power station north of Kingston.

Leave granted.

The Hon. M. PARNELL: Members would be aware, both from the media and the question asked earlier today by the Hon. Sandra Kanck, of an announcement by Strike Oil Limited that it is forming a company (Hybrid Energy SA Pty Ltd) to build a coal-fired power station north of Kingston in the South-East. According to the Stock Exchange announcement, Strike Oil says:

The proposed FuturGas Project will apply the latest combustion gasification and carbon capture and storage (including geosequestration) technologies to a large lignite—

which, to you and me, Mr President, is brown coal—

resource (578 million tonnes)...to produce low greenhouse emissions power, gas, transport fuels and other products in a sustainable manner. As a first step it is proposed that the FuturGas Project will provide 150 to 300MW of base-load electric power to the South Australian market by 2015.

I note that energy minister Conlon is reported in the media as wishing the company 'all the best', but he says it is 'a long way from the idea stage to market'. My questions are:

1. Does the government support new coal-fired power stations in South Australia?

2. How would this project impact on South Australia's legislated greenhouse gas reduction target of reducing our emissions by 60 per cent by the year 2050?

3. Can the minister point to any other coal-fired power station in Australia that uses carbon capture and storage technology to eliminate its greenhouse gas emissions?

The Hon. P. HOLLOWAY (Minister for Police, Minister for Mineral Resources Development, Minister for Urban Development and Planning) (15:15): In relation to the latter amount, probably there are not any just yet, but I am sure there will be in the very near future. I understand that both major parties have been talking about the need for clean coal technology. I am sure that there will be a significant investment on that under way in this country; but, really, that is perhaps more a matter for my colleague the Minister For Energy than me.

In relation to the proposal for a coal-fired power station at Kingston, as the Hon. Sandra Kanck mentioned earlier, there had been a proposal by Western Mining some years ago. That proposal was discontinued. There were a number of issues with that. Strike Oil, which reinvestigated the proposal, significantly changed the proposal to address some of those issues that were raised. At this stage, and as my colleague has said, it is very much in the conceptual stage. I am not aware of anything being lodged in relation to that proposal as yet. However, as with all proposals, this government will consider it.

Obviously, in relation to the amount of greenhouse gases and other questions asked by the honourable member, we would have to see the particular proposal and the scale of it before commenting. At this stage, as I said, the company has approached the government (and, as I understand it, the opposition) as a courtesy to inform it that it is looking at the proposal. As I said, the next step will be to formalise that. When that formalisation comes about, as indicated by my colleague the Minister for Environment, it will have to go through all the proper stages. At this stage it really is premature to comment because as I said the formal application has not been lodged—or if it has been lodged it is so recent that I am not aware of it. I will get more information about that, but I suspect it will be some time before any detail will become available so that we can answer those sorts of questions.