Snowy Hydro has placed an order for two gas turbines that will drive the Hunter Power Plant at Kurri.
Mitsubishi Power confirmed it had received the order for the M701F model turbines and related equipment on Monday.
Construction of the project is due to commence in late January 2022, pending State Government approval, and wrap up in late 2023.
The gas turbines, to be manufactured in Takasago Machinery Works in Hyogo Prefecture, will have the potential for up to 15 per cent hydrogen co-firing.
"Our M701F gas turbine is one of the most efficient in F class gas turbines in the world and has a proven operation records worldwide, maintaining a high reliability rate of over 99 per cent," Mitsubishi Power Australia chief executive Mr. Nishiyama said.
"We are very pleased that our M701F gas turbines will be able to contribute to the stable power supply in Australia together with increasing renewable energy."
"Our gas turbine is capable of operating on natural gas, or on a mixture of natural gas and hydrogen. The gas turbines can utilize up to 30% hydrogen for co-firing with current technology and can be configured in the future to operate on 100% hydrogen for zero-carbon emissions."
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