Alinta ends Pt Augusta solar-thermal study as coal-fired power plants closure looms

ALINTA Energy has dashed hopes of building any future jobs in Port Augusta by prematurely ending research into solar-thermal power generation options for the region.

Port Augusta power station operated by Alinta Energy. August 2015. Picture: Christopher Russell.

ALINTA Energy has dashed hopes of building any future jobs in Port Augusta by prematurely ending research into solar-thermal power generation options for the region.

Alinta said it had concluded the $2.3 million Federal and State-funded research project after a fourth milestone report confirmed a 50MW solar tower plant is not commercially feasible at this time because of its $577.07 million capital cost and annual maintenance costs of $8 million.

The study was aimed at finding viable options to replace the coal-fired plants, which could close as early as next March.

Alinta owns the Playford B and Northern power stations, near Port Augusta, and the Leigh Creek coalfields.

“Alinta can definitively conclude that the construction of a 50 MW, molten salt power-tower

located in the town of Port Augusta is not an economically feasible option for Alinta,” chief executive Jeff Dimery said.

“With a change in market conditions, and with the advancement of technologies like the one we have explored, the commercial viability of such projects will improve.”

In consultation with the Australian Renewable Energy Agency (ARENA), Alinta said it will

conclude the solar thermal feasibility study at Stage One (pre-feasibility) and not continue to

Stage Two (full-feasibility).

“Continued investigation of full-feasibility would only serve to reinforce the findings of Stage One,” he said.

When the study was launched in January 2014, Mr Dimery had said the company had “a strong history in the region, and (Alinta) are committed to its sustainable future”.

Today, Alinta said there was no update on the timeline of the closure and would not comment on its role in SA after.

The Repower Port Augusta Alliance called on Premier Jay Weatherill to step in with a plan with Alinta walking away from its feasibility study.

“Obviously we’re disappointed that Alinta are choosing to walk away, but this has been coming for a while.

“There are other companies seriously interested in making solar thermal happen in the region, the State Government acting is critical to making it happen” Mr Spencer said.

International solar-thermal generation companies, including US company SolarReserve and Spain’s Abengoa, though said to be interested, are still waiting on the sidelines.

Alinta first announced in June it was closing operations by March 2018, but informed workers in July that the revised date was March 2017.

Company executives have admitted it could still occur as early as March next year “if circumstances warrant it”.

As reported in The Advertiser, up to 400 jobs will be lost when it ceases operations, but 133 jobs could be saved by a deal struck before ETSA was privatised almost 20 years ago.

The government has announced a $1 million job-creation package for the regional and outback communities ahead of the closures.

The Port Augusta Council recently established an Alinta Advisory Group to deal with the situation and Manufacturing Minister Kyam Maher said the government “has has people on the ground in the Upper Spencer Gulf and Outback region talking to people about their needs and issues”.

Shadow Minister for State Development Dan van Holst Pellekaan said Alinta’s decision marked 100 days of inaction from Premier Weatherill.

“The Weatherill Government has allocated $60 million to help the people of the north of Adelaide prepare for the closure of Holden and the flow on economic effects from that closure.

“Proportionate assistance to alleviate the impact of the withdrawal of Alinta must be made available for the communities of Port Augusta, Leigh Creek and the surrounding district.”

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