At the same time, embattled AGL Energy is struggling to determine its forward strategy and put in place a refreshed board after the collapse of a demerger plan and as its biggest shareholder, software billionaire Mike Cannon-Brookes, pushes for a faster exit from coal power to align with the goals of the Paris climate accord. All rights reserved. Sign up to receive an email with the top stories from Guardian Australia every morning. It produces about four per cent of the electricity supplied to consumers in the National Electricity Market. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. The other legacies of coal power include environmental and community impact that cannot be ignored as the closure of power stations take place in NSW. Several coal-fired plants in New South Wales have brought their closure dates forward. Delta said it did not make financial sense to proceed with the upgrade with the smaller grant amount, given ongoing uncertainty in the energy market and the looming closure of the power station, currently slated for 2029. Delta Coal which supplies Vales Point have an active proposal to continue mining largely exploited seams, ommunity fears over worsening pollution impacts from this aging facility under this potential new ownership, RSVP for updates and an invitation in 2023. Granted in December last year, the exemption allows the operators to emit a higher level of nitrogen oxide than usually allowable under clean air regulations. Wikimedia. This page was last edited on 30 April 2021, at 11:25. "Hundreds of thousands of people living near Australia's largest power station do not know what they are breathing," the report states. AGL, rival Origin Energy and EnergyAustralia have all brought forward the dates for closure of coal-fired power stations since the start of 2021, triggering suggestions that some other coal generators may need to keep running for longer to keep electricity supply secure amid the rise of weather-dependent wind and solar power. It is the second instance of the Morrison government failing to secure investment in new coal-fired generation infrastructure by offering insufficient funding support, following earlier revelations that the government had not provided sufficient grant funding to ensure proponents of a coal-fired power station in Queensland could complete a bankable feasibility study. [5] The balloon loop opened in March 1980. If you want to be updated with all the latest energy sector news, you can sign up for our newsletter or visit our blog section. USE is forecasted to be greater than the reliability standard from 2027-28 in New South Wales, increasing further from 2029-30 when Vales Point Power Station is expected to retire. Delta Electricity has stated that Vales Point's "nominal closure" is due in 2029. . The proposed plant would adjoin the existing 1320 MW Vales Point power station owned by Delta Electricity. The announcement today by Original doesnt change Vales Points position, said the spokesperson. It is one of the chief causes of yellow-brown smog. The deal comes amid an extended period of turbulence in baseload power generation in the National Electricity Market as cheap renewable energy flowing on to the grid makes it harder to operate baseload coal plants profitably, even amid surging prices for wholesale electricity. Subsequently, St Baker stated that the shortlisted project was for 20 MW upgrades of the two existing turbines at the Vales Point B plant. The WHO annual guideline for NOx of 10 ug/m3 (4.87 ppb) is regularly breached at monitoring sites close to the Vales Point power station. Were carefully considering it and its an important decision to make and well be making that public shortly, he said. In 2010, a carbon capture and storage (CCS) project at Delta Electricity's now mothballed Munmorah power station was set for expansion, after receiving US$28 million in funding. A spokesperson for Delta Energy said there were no plans for Vales Point to go the same way as Eraring. The role of Deltas Vales Point power station in two devastating fish kills that took place in mid-2002 in Wyee Bay are currently under investigation by the NSW EPA. Owners of Vales Point power station turn down $8.7 million grant, blaming the Morrison government for taking too long to approve funds for turbine upgrades. We already have really low NOx emissions, lower than Bayswater and Mt Piper, and we are doing operational changes, and we believe that we will meet whatever the requirements are going to be.. Proponents of renewable energy and some business leaders haveraised concerns that financial supportfor hydrogen production powered by fossil fuels could artificially prolong the operation of the nations ageing fleet of coal-fired power stations, or create demand for gas which would be better directed to wind and solar projects. NSW has committed to reach net zero greenhouse gas emissions, and the Hunter region is zoned for renewable energy development to help reach the goal. The combined capacity of 2195 MW made Vales Point the largest power station in Australia at the time. He dismissed the suggestion that Vales Point would close earlier than 2029, particularly given the impending closure of its near neighbour, Liddell Power Station, in 2023. But it also represents a significant expansion of Sev.en in Australias coal power sector beyond its interest in Queenslands InterGen, with the suggestion that further investments in the domestic energy sector may be on the cards. Mr . Andy Saunders 1 year ago John John 1 year ago Andy Saunders 1 year ago Two investors have bought one of NSW's largest coal-fired power stations for the price of a nice suburban house. Mannering Park Progress Association spokesperson Sue Wynn said a new coal-fired power station at Vales Point was the worst news Mannering Park and surrounding areas could possibly hear. Records date back to 2011. the Liddell plant is owned by AGL which has rejected . In an open letter to the Newcastle Herald, eleven community environment groups from Lake Macquarie and the Hunter urge the Australian Treasurer, Jim Chalmers to reject the sale of the Vales Point power station for fear of worsening impacts. A licence granted last year exempts the operators of the Vales Point plant, recently sold to Sev.en Global Investments, from nitrogen oxide pollution standards. These fossil fuel power stations burn coal to power steam turbines that generate some or all of the electricity they produce. [3] The plan for a new 660-MW plant appears to be cancelled. Vales Point is located on the southern shore of the lake, near the township of Mannering Park. To learn more, read our Privacy Policy. As outlined in the budget speech and subsequent announcement, the budget allocation has a funding cap of $8.7m, which is below that which Delta requested, leaving a substantially higher quantum of funding by Delta, Delta said in the letter. With this acquisition we will significantly strengthen our presence in Australia, said Sev.en chief executive Alan Svoboda. Analysts identified particular economic risk for Vales Point coal power near Newcastle, the same region where NSW Energy Minister Matt Kean will today announce a $70 million fund to grow a green hydrogen industry, which he said would bring jobs and growth to the region. The power stationed operated from 11 March 1927 until March 1976. When there are renewable energy alternatives available, like the Star of the South project, that will generate clean energy and create local jobs, there is no excuse for building more, big polluting coal projects that pollute our air and make our communities sick, Ms Rivers said. He floated the proposal only two weeks after the NSW Environment Protection Authority ordered Vales Point owner Delta Electricity to clean up a huge part of the power stations ash dam after dumped asbestos was found in building waste fill. The REZ will not only attract investment in clean energy, it will also underpin the growth of new low-carbon industries such as green hydrogen, ammonia and metals production which the world is going to need as it decarbonises, Mr Crouch said. At Delta, which supplies about 11 per cent of NSWs power, RBC is thought to have run a process to sell either 50 per cent or 100 per cent, with Mr St Baker originally keeping open an option to retain his stake. AGL said it was still committed to its plans for Liddell. The owner blamed the COVID-19 pandemic for reducing demand and an influx of cheaper renewables reducing wholesale electricity prices. Whoever owns these assets, I want to make sure they are acting in the interests of the citizens of this state, not for vested interests, he said. Hoping that this means by 2029 transporting and storage of toxic coal dust via the eyesore transport chanel located over Rutleys road will cease and be dismantled ? In its home market, it runs two coal power generators and two combined heat and power plants. It has two steam turbines, with a total generating capacity of 1,320 MW (1,770,000 hp) of electricity. In public comments this week, the current owner of Vales Point, Trevor St Baker, indicated that Sev.en may seek to keep the station open beyond its current closure date of 2029, saying the company had shown a commitment to the sector and an ambition to expand, both in Australia and globally. The NSW Government has responded to the closure of Eraring by saying that to ensure energy reliability, it will work with industry partners to install the Waratah Super Battery, a 700MW/1400MWh grid battery, by 2025 to release grid capacity so Sydney, Newcastle and Wollongong consumers can access more energy from existing electricity generation.. It listed Eraring, Vales Point and Mt Piper in NSW and Yallourn in Victoria as most vulnerable. Vales Point 'A' Station was decommissioned in 1989. In public comments this week, the current owner of Vales Point, Trevor St Baker, indicated that Sev.en may seek to keep the station open beyond its current closure date of 2029, saying the. It is also gearing up to invest more in the business as it seeks approval for a license to allow mining to continue until 2029. Coal transport and infrastructure in Australia, Key developments in coal mining and power in Australia in 2012, Financing coal power stations in Australia, Underwriting New Generation Investments program, "Delivering affordable and reliable power", "Federal government shortlists upgrade of Vales Point power station turbine", https://www.gem.wiki/w/index.php?title=Vales_Point_A_power_station_(replacement)&oldid=241402, Creative Commons Attribution-NonCommercial-ShareAlike. He noted the deal includes a coal mine that supplies the 1320-megawatt Vales Point generator and that the plant is in good order. Delta flagged early closure of Vales Point coal plant when it rejected federal grant | RenewEconomy 1 year ago Kim Grierson 1 year ago 1 year ago Apparently NSW retained the decommissioning liabilities Andy Saunders 1 year ago Prices that make it profitable? . Coal is carbon. Sep 18, 2022 - 3.16pm Energy entrepreneur Trevor St Baker and coal investor Brian Flannery will sell their Vales Point coal-fired power station in NSW for several hundred million dollars to. (Delta Electricity have also flagged the possibility of the proposed plant being built on the the site of the nearby Liddell power station, which is slated for closure in 2022. The transaction still needs to be completed, with approval from the Foreign Investment Review Board outstanding. [1], In March 2019 Prime Minister Scott Morrison announced that Delta Electricity's proposal had been shortlisted but provided no details.[2]. Coal plants list deadlines when their operating life is set to cease, but Dr Mountain said Victoria has secured a valuable guarantee that Yallourn will be available to produce until 2028, and if the company brings forward closure the state will receive compensation. We oppose this sale as it is NOT in the local, state or national interest: The first two units were completed in 1963, and the third in 1964. Cockle Creek Power Station was located in Teralba, New South Wales, Australia on the banks of Cockle Creek. Help using this website - Accessibility statement, Alinta Energys Hong Kong-based owner Chow Tai Fook Enterprises is understood, EnergyAustralias owner CLP Group, also based in Hong Kong, is in the market, AGL Energy is struggling to determine its forward strategy. Hydrogen is a rare element which means it needs to be manufactured. This week Delta Electricity announced it sold the 1,320-megawatt Vales Point power station, located in the states Hunter region, to Sev.en Global Investments, owned by Czech billionaire Pavel Tyka. In December last year, Vales Point was issued with an order to limit its emissions of nitrogen oxide. fair dinkum" baseload power generation after the Federal Government lost a public battle with generator AGL over the closure of Liddell power station in 2022. The NSW EPA noted that environment department modelling found that ground-level concentration of NOx in the community meets national health standards. It leaves the Morrison governments UNGI program has still having supported no new generation investments, despite being first announced in October 2018, and announcing a dozen shortlisted projects more than two years ago. The EPA has the chance to take a good look at this before issuing the new owners with a licence to pollute, she said. By 2050, green hydrogen has the potential to drive $350 billion in investment across Australia in current dollars and up to $26 billion per year in additional GDP, supporting the emergence of new decarbonised industries such as green steel and ammonia.. . The project was moved to Vales Point Power Station in 2012, after Munmorah closed. On Tuesday the NSW energy minister, Matt Kean, declined to weigh in on whether the sale was appropriate, but said the government would remain vigilant over the plant operations. With only an approximately seven-year operating life now remaining, and a very weak wholesale electricity forward curve, we believe Yallourns permanent exit may still be even earlier than now planned, Goldman Sachs analyst Baden Moore said. The Vales Point Power Plant is currently set for closure in 2029, but the EPA ruling delivered on 28 October 2022 could bring that date forward to 2025. On this Wikipedia the language links are at the top of the page across from the article title. The grant was to pay for upgrades to a turbine at the Vales Point power station, increasing its thermal efficiency, allowing an additional 30MW of output for the same amount of coal burnt.