A Coalition backbencher is urging the government to support a new coal-fired power plant in the Hunter Valley.

The coal-fired plant is proposed for outside Kurri Kurri and is backed by the China Energy Engineering Corporation (CEEC).

Coalition backbencher Craig Kelly spoke to The Chris Smith Show, denying he suggested the government use taxpayer subsidies to support the project.

Mr Kelly tells Chris Smith the plant is the ideal replacement for AGL’s Liddell power plant, which is set to close in 2022.

“There are hundreds of coal-powered fire stations being built around the world that don’t need government subsidies.

“All we have to do is try and give them some guarantee that they won’t be run out of town by a Labor-Green government, somewhere down the track.

“If we could get Liddell replaced with this it would be fantastic for NSW.”

Click PLAY to listen to the full interview