Origin Energy has advised the Australian Stock Exchange that Eraring power station is running out of coal.
The news resulted in the company slashing the profit target for the electricity business. It also threatens to deepen a worsening energy crisis engulfing Australia's east coast.
The company cited challenges, which it said had "deteriorated significantly" over recent weeks, in sourcing black coal for the 2880-megawatt generator.
Production issues at its primary supplier Centennial Coal's nearby Mandalong mine are not expected to ease until next year.
More on this issue: Hunter energy transition news from the Newcastle Herald
The company is seeking to source more expensive alternative supplies of the fossil fuel by rail.
Coal prices have been rising sharply as an energy crunch is being exacerbated by utilities shunning Russian supplies and scrambling for alternatives in a bid to starve Moscow of the revenue it needs to fund the war in Ukraine.
"There is currently extreme volatility across commodity markets, driven by a combination of global energy supply and security concerns, exacerbated by the impact of the Russian invasion of Ukraine, with subsequent unprecedented increases in international energy prices including coal, gas and oil," Origin Energy said.
"Domestically, coal plant outages and high coal and gas prices have contributed to a steep escalation in wholesale electricity prices."
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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.
