AGL Energy Limited, a leading gas & energy industry major, in its recent announcement has unveiled that it will build a gas-fired power plant worth USD 400 million near Newcastle, NSW. Reportedly, the energy company will be constructing a 252 MW gas-fired plant near its Gas Storage Facility in Newcastle, which is anticipated to be completed by 2022.
The move comes amid the intense pressure that has been developed by the federal government to sell AGL’s Liddell coal plant station in 2022. The new gas-fired power plant will be a replacement of the planned shutdown, cite sources familiar with the matter. For the record, the new plant will consist of 14 gas engines with 18 megawatt power.
Industry experts deem that the energy sector has been undergoing a transformation of sorts and is therefore witnessing rapid adoption of clean renewable energy and storage technologies.
Andy Vesey, AGL chief executive, was quoted saying that the company is dedicated to support the shift of Australia’s conventional electricity generation capabilities to a reliable, clean, and modern energy supply. He further continued that in support of this electricity generation change, the company had given a seven years’ notice prior to its planned closure and is looking forward to build the power station near Newcastle.
Reports reveal that the announcement has put the three-phased planned replacement of the Liddell coal-fired power plant well ahead of its schedule. AGL reported that it is also planning to upgrade its Bayswater power station by adding a 100-megawatt coal-fired power plant.
AGL has not yet committed anything on the second & third stage of replacing the 850 MW of energy generation that will be lost if the Liddell coal-fired power station closes down.
The Sydney-based company said that it is trying to develop a further 500MW of gas-fired generation capacity, in the wake of the growing demand from the industrial & commercial applications of the energy industry.