Australian integrated energy firm AGL Energy is set to construct a 252MW gas-fired power plant near Newcastle in the Australian state of New South Wales.
Estimated to cost AUD400m ($301.9m), the plant will feature 14 reciprocating engine units with each of the engines have a capacity to generate 18MW of power.
The company is evaluating sites for the power plant near its Newcastle Gas Storage Facility. Construction on the power project is expected to be completed in 2022.
AGL managing director and CEO Andy Vesey said: “AGL is committed to supporting the orderly transition of Australia’s electricity generation capability to modern, clean and reliable energy supply.
“That’s why we gave seven years’ notice of when we intend to close the Liddell Power Station at the end of 2022 and we are pleased to commit today to build the power station near Newcastle.”
Vesey added: “AGL has now committed ahead of schedule to Stage 1 of our NSW Generation Plan submitted to the Federal Government and the Australian Energy Market Operator (AEMO) in December 2017.
“In addition, we continue to assess the potential to develop a further 500 MW of gas-fired generation capacity as part of Stage 2 of that Plan and are inviting commercial and industrial customers to provide their long-term demand commitments to enable AGL to progress this project.”
The first stage of the plan includes projects required to meet AGL’s committed customer needs: the 252MW power station near Newcastle, a 100MW efficiency upgrade to AGL’s Bayswater Power Station, an agreement for AGL to offtake 300MW of solar capacity from Maoneng Australia’s Sunraysia solar project, the conversion of a Liddell turbine into a synchronous condenser, and up to 20MW of demand response capacity.
The second stage includes projects required to meet the company’s potential un-contracted commercial and industrial customer demand, and the third stage involves further development that may be required if no other market participants invest in new generation before closing Liddell Power Station.