Coal-fired Vales Point power station upgrade to be considered by federal government

A federally-funded upgrade to the ageing coal-fired power station on the shore of Lake Macquarie at Mannering Park edges a step closer.

Delta Electricity’s Vales Point Power Station at Mannering Park.

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A federally-funded upgrade to the ageing Vales Point Power Station at Mannering Park could be a reality after the project was short-listed for consideration by the Morrison government.

Delta had approached the government under the Underwriting New Generation Investments program.

It seeks to have its two turbines upgraded, which would increase power generation by 40 megawatts and take the life of the plant through to near 2030.

The project was one of 66 considered by the government and is the only coal-based project to make the shortlist of 12.

Trevor St Baker and colleagues outside Vales Point. Picture: Mark Scott

“Those projects have been drawn down from 66 proposals down to a dozen. Those projects will deliver around 4000 megawatts, which is about twice the size of what we’re talking about, up at current stations like Liddell and other coal-fired power stations,” Mr Morrison said.

“It will provide gas and hydro, and one very small project, which is a coal upgrade project in NSW in Lake Macquarie.”

Vales Point was sold by the NSW government to rich listers Trevor St John and Brian Flannery in November 2015 for just $1 million. The sale allowed the state government to shirk any clean-up or remediation costs once the plant reaches the end of its life.

However, the power plant is now valued at near $700 million as wholesale energy prices continue to soar.

George and Margaret Marromichalis walk their dog Marko next to Vales Point Power Station on the shores of Lake Macquarie. Picture: Peter Lorimer

In December 2018, Delta Electricity invested further in the plant by securing ownership of the nearby Chain Valley mine, which had gone into receivership.

In other news, Delta is “currently considering construction options and the financing” of the Vales Point Solar Plant, said company secretary Steve Gurney.

The solar plant was approved by the NSW Government in November 2018.

That project will deliver renewable energy over a 25-year time frame from otherwise unproductive rehabilitated land, according to Delta.

Location of the proposed Vales Point solar farm. Picture: Google Maps.

The NSW Environment Protection Authority issued a clean-up notice to Delta Electricity in October after demolition waste, including asbestos, was located at an ash dam.

Fill from the North Connex motorway project was the only waste supposed to be received by Delta.

“Delta now has an agreed plan with the EPA as to the methodology for the clean-up and further testing. This work has commenced,” Mr Gurney told the Express Advocate this week.