The Federal Government has signed off on AGL's proposed gas-fired power station at Tomago, even though the $400 million project appears no closer to becoming a reality.
The 250 megawatt Newcastle Power Project, which has already been given the green light by the State Government, received conditional federal environmental approval this week.
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When it was announced in 2018, AGL said the quick-start peaking plant would help fill the short-fall in energy supply during peak demand periods or whenever renewables weren't available.
AGL announced in April that it would not be in a position to make a final investment decision on the project until it received clarification from the State Government about the NSW energy plan.
The company previously said the Federal Government's decision to proceed with its $600 million gas-fired power station at Kurri would not determine whether it proceeded with the Tomago project, which would be situated at the corner of Old Punt Road and the Pacific Highway.
An AGL spokeswoman said this week that the company welcomed the Federal Government's conditional approval for the project.
"This is an important step in the approval process. AGL will review the economics of the project should we determine there is a market need," she said.
"We are committed to delivering new generation in the Hunter region and are progressing our plans to develop a low-carbon integrated industrial energy hub on site at Liddell, the 'Hunter Hub' will include grid-scale batteries, pumped hydro, wind and solar storage."
Snowy Hydro, which is building the Kurri gas-fired power station, released the business case for the project in October.
It cited a "desperate need of dispatchable energy, such as gas peaking power," as a justification for the project.
Construction on the 660 megawatt generator is due to commence early next year pending State Government approval.
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Matthew Kelly
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
