CLP's EnergyAustralia to expand gas-fired power plant with state support (updated)
04/05/2021 05:24
* New gas-fired plant will be able to use hydrogen
* Helps fill supply gap when coal-fired plant shuts in 2023
* Two other rival gas-fired plants on the cards
(Adds details on push for new power supply, GE comment)
By Sonali Paul
MELBOURNE, May 4 (Reuters) - Australia's third-largest power
retailer EnergyAustralia said on Tuesday it has approved a A$300
million ($232 million) expansion of its gas-fired Tallawarra
power station after securing support from the state of New South
Wales and the federal government.
The plant, which will also be able to use hydrogen, is seen
as crucial to help plug a power supply gap looming when rival
AGL Energy AGL.AX shuts its Liddell coal-fired plant in 2023.
EnergyAustralia, a unit of Hong Kong's CLP Holdings
0002.HK , won A$78 million in funding from the New South Wales
government and A$5 million from the federal government for the
plant.
"The (Tallawarra B) station will be operating in time for
the summer of 2023-24, following the closure of the Liddell
power station, and it will help to kick start the green hydrogen
industry," outgoing Managing Director Catherine Tanna said.
EnergyAustralia said it would offer to buy 200,000 kilograms
of green hydrogen annually for the 300 megawatt (MW) plant from
2025.
GE GE.N said it will be providing the turbine for the
Tallawarra B project, the first in the world to use one of its
new hydrogen-compatible turbines.
"This is a win for households and businesses across New
South Wales and the broader National Electricity Market," Energy
Minister Angus Taylor said in a statement.
The federal government had put pressure on the private
sector to sign off on investments by April 30 to provide up to
1,000 MW of flexible power capacity to avert price hikes and
blackouts when Liddell closes. urn:newsml:reuters.com:*:nL4N2GC1HR
If industry fails to make those investments, the
federally-owned Snowy Hydro company has said it would build a
750 MW gas-fired plant in New South Wales.
Squadron Energy, owned by mining billionaire Andrew Forrest,
has proposed to build a 660 MW gas-fired power plant,
convertible to hydrogen, at Port Kembla.
The project was shortlisted for support through the federal
government's Underwriting New Generation Investment scheme but
that remains under review.
Squadron's chief executive was not immediately available for
comment on the project.
($1 = 1.2923 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru; Editing by Aditya
Soni and Richard Pullin)
((Sameer.Manekar@thomsonreuters.com; +918061823447;))