AGL has put plans for its proposed $400 million Newcastle gas-fired power station near Tomago on public exhibition
The state significant infrastructure project, which is an integral part of the company's strategy to offset the shutdown of Liddell power station between 2022 and 2023, will create 300 construction jobs and employ 23 people when operational.
Located between the Pacific Highway and Old Punt Road on a site previously permitted for a power plant, the project will allow for a fast start operation using either reciprocating engines or gas turbines.
"AGL is committed to investing in new generation, in order to improve the reliability of the NSW energy system and affordability for our customers," AGL chief executive Brett Redman said.
"This proposed power station has a capacity of 250 megawatts and will deliver rapidly dispatchable power for homes and businesses across NSW during periods of high demand. As Australia's electricity market adapts to a significant increase in renewable energy, we're focused on our contribution to creating a secure energy system."
AGL hopes to start construction of the project in the first quarter of 2021 and have it operating in 2022 to coincide with the closure of the Liddell power station.
Key features of the project include:
- The power station: a dual fuel power station capable of operating on natural gas and or liquid fuel (diesel)
- Gas pipelines: to store gas and to connect the power station to existing gas supply sources including the Jemena Gas Network and AGL's Newcastle Gas Storage Facility via AGL's existing pipeline
- Electricity transmission lines: to transfer the electricity produced by the NPS to thenational electricity network
The plant will produce a fraction of the emissions produced by Liddell.
The project is one of the ways AGL is looking to increase firming capacity in the electricity market. It recently announced the first generation of the Barker Inlet Power Station in South Australia, as well as a deal to develop four large-scale batteries in NSW with Maoneng Group.
"Not only will this project improve energy security for NSW it will provide vital economic and social benefits for the region, providing employment and investment into regional NSW," Mr Redman said.
"We know new investment in regional NSW is crucial to communities continued prosperity and even more so right now as many continue to work through one of the state's worst droughts."
In another renewable initiative, AGL announced in August that it had signed an agreement with Idemitsu Australia Resources to undertake an engineering feasibility study for a proposed 250-megawatt pumped hydro project at Bells Mountain, near Muswellbrook.
The agreement follows on from an initial concept study which explored the viability of utlising the void on the Muswellbrook Coal site.
Public exhibition for the Newcastle gas-fired power station runs from Wednesday, until December 18.
The environmental impact statement will be available for downloading through www.agl.com.au/NPSP and the NSW Department of Planning, Industry and Environment website.