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Feature interview: Qld shadow energy minister's concerns over new state government

Rocking industry confidence with mixed policy moves and messaging

Feature interview: Qld shadow energy minister's concerns over new state government

Credits: Lance McCallum Facebook

Queensland's shadow energy minister, Lance McCallum, says the State's recently elected government is already knocking industry confidence with its inconsistent policies and messaging.

In an exclusive sit-down interview with ENB, McCallum said he is already concerned with how the state's LNP government is treating the energy sector and is fearful the government may destabilise the state with potential asset selloffs.

Lance McCallum | Credits: Qld labor Party

McCallum pointed in particular to the new government's attacks on the giant pumped hydro projects at Pioneer-Burdekin and Borumba.

"There's some really concerning early signs in terms of projects being cut or downsized," McCallum said.

"One of the first acts of the new government was to cut the Pioneer Burdick Pump Hydro Project. That's key when it comes to our energy future in terms of energy storage, as well as what it would have made meant for job creation and economic development, particularly given it was a regional project.  Now they are making noises about downsizing the Borumba Pumped Hydro Project.

"The energy minister and treasurer have said that it is apparently over the budget, and I would call on them to make whatever briefings or reports that they have public so that we can take a proper look at it.

"So, there is a lot of uncertainty throwing a big question mark over a really, really critical project, and yet the government is still saying they're committed to it and it's going to happen. So, they're saying different things and creating a lot of uncertainty."

McCallum is concerned about the policies of Qld Prem David Crisafulli and his Energy Minister David Janetzki | Credits: David Janetzki Facebook

McCallum said the LNP government's inconsistency to date with its messaging may impact one of Australia's most successful energy producing states.

"There is a real need for policy certainty and the right infrastructure investment to secure Queensland's energy future. The government has to show a determination to stay the course, because the state has seen an incredible amount, like billions of dollars in investment over the last decade creating almost 10,000 jobs.

"We need to stay the course, and we need to provide certainty for industry, and we need to make sure that we're delivering for Queensland communities, and that includes affordable, reliable and sustainable energy."

McCallum said he will be asking the government how it plans to deal with the retaining the state's energy infrastructure.

"In my opinion, we're very unique. We've still got public ownership of energy assets up here. We own 100% of the poles and wires and transmission distribution. And the majority of the generation still has a lot of private investment coming in.

"So, government is not only a policy maker and a regulator, but it also has direct skin in the game as an owner and operator of assets. We're very fortunate to have amazing natural resources in Queensland, whether that is things like gas resources, mineral resources and indeed, renewable resources - we're incredibly fortunate.

"And as you know, we've got a long history as being an energy powerhouse, whether it's in the domestic market, or whether it's trading with our neighbours, particularly in Southeast Asia."

The Shadow Energy Minister, who brings a wealth of experience and knowledge to his new role, said he will also be closely monitoring how the new government deals with exploration and hydrogen.

"There's always a lot of exploration happening in Queensland. I'll be interested to see what the new government does, if anything, when it comes to the policy and regulatory settings for exploration settlements in Queensland. Our government gave certainty and confidence to industry and that is critical."

McCallum said gas has an important role to play in Queensland and throughout the nation.

"I think it will continue to be in the future, along with green hydrogen.

"I think that sustainable gasses and renewable gasses will be really, really critical to our energy future and I am excited about the potential to use renewable energy to create hydrogen.

"But it is all about policy certainty and I will be closely monitoring how the government deals with industry."

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

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