Prime Minister Scott Morrison was tight-lipped about the government's plans to build a gas-fired power plant at Kurri Kurri during a visit to Newcastle Airport on Friday.
But he did confirm the government was still weighing up whether to proceed with the project despite this week's announcement by Energy Australia that it would build a 300 megawatt "fast start" megawatt gas-fired power station in the Illawarra region.
While welcoming the project, he pointed to the fact that it represented only about 30 per cent of the capacity that will be lost from the closure of Liddell Power station in 2023.
"I welcome the Tallawarra announcement. I think that's a great contribution to the task that we have to replace the capacity that will be lost as a result of Liddell," Mr Morrison said.
But the Energy Minister Angus Taylor and I know what the task is, and that means there's a lot more that still needs to be done.
"And that's what will be guiding our decision on Kurri Kurri. And as I said before, when I was here in the Hunter earlier in the year, this is about ensuring we have a gas-fired recovery, and that's what the Hunter needs.
"And I can assure you we'll be taking decisions consistent with that, and when we're in a position to make further announcements on those matters, then we enthusiastically will."
Like the proposed Kurri plant, Tallawarra B will be capable of blending hydrogen and conventional gas fuels.
The funding is designed to unlock supply through critical infrastructure to ensure households and job-creating industries can access gas at a competitive price.
