Coal plant proposal for PNG city a poor option - NGO

9:55 am on 19 September 2017

A proposal for a coal-fired power plant in Lae is a poor economic and environmental option, according to an anti-coal group in Papua New Guinea.

Lae, Papua New Guinea

Lae, Papua New Guinea Photo: RNZI/ Johnny Blades

The proposal by Mayur Resources to build a plant on the Lae Tidal Basin has lingered for a couple of years, but failed to get a purchase agreement from PNG Power.

However Mayur had approval from PNG Ports through its re-development of Lae's important port area.

But Chris Lahberger from Nogat Coal PNG said the government knew that a coal plant was not an efficient way to generate energy.

"But it just looks awful as well, as PNG is a signatory to the Paris (Climate) Agreement to go one hundred percent renewable, and a coal mine with a forty year life span," Mr Lahberger said.

"Mayur are now suggesting that the life span of this coal plant to be fifteen years. But the economics of that just doesn't stack up. Like you would not make your money back from your investment if you ran it for just fifteen years."

Mr Lahberger said renewable energy was a better alternative.