AGL chief operating officer Markus Brokhof said the power station's retirement in April, which was first mooted in 2015, would be the first of the company's thermal coal generation sites to become a low-carbon industrial energy hub.

"After over 50 years of generating electricity for Australia, Liddell power station has reached the end of its operational life and will close in April 2023," he said.

"We're very pleased to announce that Delta Group has been awarded the contract for the demolition of the station," he said.

Mr Brokhof said the demolition came after decades of memories forged at the site.

"[It] has been an important part of the Upper Hunter community for a long time now and it's also the home of many great memories for thousands of people who've worked there over the years," he said.

Delta Group executive general manager Jason Simcocks described the demolition as a landmark project.

"Our team is fully committed in assisting AGL achieve a low risk, safe and environmentally sound project leaving behind a positive legacy for the local and regional community," he said.

"We will work with local community, industry, businesses, and local governments to achieve this common goal."

Demolition is due to begin in early 2024 and take about two years.

The scope of works includes removing the boilers, chimneys, turbine houses, coal plant and ancillary buildings.

The site will also be levelled using recovering crushed concrete.

AGL said more than 90 per cent of the materials are expected to be recycled, including 70,000 tonnes of steel.

Transmission connections will be retained for the future use, which includes an approved 500-megwatt grid-scale battery.

IN THE NEWS:

To see more stories and read today's paper download the Newcastle Herald news app here.