Australia to splash A$600mn on NSW gas plant
The Australian government will spend A$600mn ($468mn) on building a new gas-fired power plant in the Hunter Valley in the state of New South Wales (NSW), the country's energy minister Angus Taylor said on May 19.
“This important project delivers on the government’s 1,000 MW target set last September, which was created to avoid unacceptable price increases following the closure of the Liddell power station in 2023,” he said.
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In the 2021-22 budget, the government committed up to A$600mn for Snowy Hydro to construct a 660 MW open cycle gas turbine at Kurri Kurri in the Hunter Valley. This project, together with EnergyAustralia’s 316 MW Tallawarra B open cycle gas plant, will help shore up the security, reliability and affordability of electricity for consumers in NSW, the minister said. The project will start generating in time for summer 2023-24 when AGL's coal-fired Liddell power plant closes.
EnergyAustralia approved Australia's first net-zero emissions hydrogen and gas capable power plant in the Illawarra region of NSW earlier this month. The 300 MW Tallawarra B power station will sit alongside the company's existing Tallawarra A 435 MW gas plant.
Through the 2021-22 budget, the government is also providing up to A$30mn to support early works on Australian Industrial Power’s (AIP) Port Kembla power station project as it progresses to the final investment decision. “The project will play a crucial role in reducing market volatility risks in NSW by supporting reliable electricity supply and keeping prices low,” Taylor said.