AGL to build new gas-fired power station in Kwinana

The 250 MW station is set to open in 2029, when coal-fired generation ends in South West WA, but new gas turbines are increasingly hard to get.

AGL to build new gas-fired power station in Kwinana
AGL already has four 30 megawatt gas turbines in Kwinana. Source: AGL

AGL is seeking environmental approval to build a 250 megawatt open-cycle gas turbine power station in Kwinana to operate from 2029 when coal-fired power is expected to disappear from the South West grid.

The WA Environmental Protection Authority released AGL's plans on Friday for seven days of public comment on whether it should review the proposal.

The "K2" power station would operate as a peaking power station, supplying additional power during periods of peak and high shoulder load demands. It will run on gas but be capable of burning other fuels, including hydrogen and diesel.

Open-cycle gas-fired power stations are less efficient than closed-cycle power stations that use the waste heat from the turbines to generate additional steam power. However, they are more suitable for the fluctuating loads required to support variable renewable energy.

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AGL estimates the plant will emit an average of 196,000 tonnes of CO2 a year for 30 years from 2029 and consume about 50 terajoules of gas a day.

In its submission to the EPA, AGL said greenhouse gas emissions were the only aspect of the project that would have a significant impact on the environment.

It will be built on the site of its existing 120 megawatt Swift Power Station 40km south of Perth.

The $7 billion ASX-listed company that is a major electricity generator and power and gas retailer in the eastern states entered the WA power market in 2019 when it bought Perth Energy which owned the existing Kwinana power station.

AGL has not yet chosen the type and number of gas turbines.

Globally, there is a shortage of gas turbines, with costs rising and delivery times growing. In March, John Ketchum, chief executive of US power generator NextEra Energy, said that the cost of a gas-fired power station in the US had tripled in three years.

“When you look at gas as a solution…you’re really looking at 2030 or later,” he said.

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