Keeping the Upper Hunter's Liddell power station open for an extra three years would have disastrous environmental and human health consequences, a national environment advocacy group has warned.
It comes as Energy Minister Angus Taylor refused to rule out the possibility that the federal government could spend $300 million to keep the power station open past 2023 or even purchase it directly.
Using the results of a 2018 study by Newcastle-based epidemiologist Dr Ben Ewald, Environmental Justice Australia calculated air pollution from Liddell Power station would cause an additional 41 premature deaths if it remained open for an extra three years.
The extension would also cause an additional 33 low-birthweight babies and 51 additional cases of type 2 diabetes from exposure to pollutants such as sulfur dioxide and nitrogen dioxide.
"Saving taxpayers $300 million is an obvious reason for shredding this ridiculous plan but preventing more people from dying prematurely from serious illnesses like stroke, cancer and heart disease, is a compelling enough reason on its own," Director of Research and Advocacy at Environmental Justice Australia Nicola Rivers said.
"The health bill from air pollution costs Australians more than 4000 lives and $24 billion a year. Energy Minister Angus Taylor should stop trying to find ways to keep this ageing and inefficient power station open and put the health of the community first."
Liddell's owner, AGL Energy , gave seven years notice that it planned to close the 48-year-old plant by 2023. But Mr Taylor lobbied to keep it open until 2026 and set up the Liddell Taskforce to investigate extending its operations.
Department officials have played down reports that the government was about to purchase the power station outright from AGL or provide the $300 million required to keep it operating beyond its forecast closure date.
The work of the Liddell taskforce had not yet completed and that the report to be delivered to energy minister Angus Taylor was still being finalised, a budget estimates hearing heard on Tuesday.
Mr Taylor also told ABC's 7.30 Report on Monday that a decision on the government's response to the looming closure of the Liddell power station would be made after the taskforce had delivered its recommendations.
"I haven't received the final report yet but what I will say is that it is crucial that as... these power stations get older, we have either life extension or replacement and that is to ensure that we have downward pressure on prices," Mr Taylor said.
It is estimated that the state's five power stations collectively emit enough uncontrolled air pollution to cause 279 deaths each year.
