Biggest coal project lines up for approval as Albanese calls for “bravery” in climate action

The NSW Independent Planning Commission is expected to approve the Hunter Valley Operations coal mine extension by September 30. The project, owned by Glencore and Yancoal, would extend the mine's life by 19 years and produce 429 million tonnes of coal. Combustion of that coal would generate roughly 809 million tonnes of CO2 equivalent, about seven times NSW's annual carbon emissions. The timing is awkward: Prime Minister Albanese called for climate action at Climate Week in New York while his government moved toward approving this project, alongside the North West Shelf gas extension and the Beetaloo gasfield development.

Where this fits

This story exposes the gap between Australia's renewables-only decarbonisation pathway and the firm power it still needs. The Albanese government approves coal and gas projects while building a grid that relies on weather-dependent solar and wind, backed by gas peaking plants and battery storage. That dual policy, mandating renewables while approving fossil fuels, reveals an unspoken truth: the transition cannot run on renewables alone at the pace required, so the grid still leans on dispatchable fuel. The alternative, firm nuclear power, remains legally banned, forcing Australia to choose between coal/gas firming and the material and cost burden of a far larger renewable-plus-storage system.

What it means

Australia is locked into a carbon-heavy grid transition. Coal will burn for decades while renewables are built at enormous capital cost, and the grid requires gas or storage backup to function. A firm low-carbon source, nuclear, is off the table by law. The grid will be more expensive, less resilient, and still dependent on hydrocarbons for reliability.