Hazelwood power station set to close in March next year

THE Hazelwood power station is set to close in March next year as its foreign owners prepare to finalise the decision as early as this Thursday.

French energy giant Engie is publicly maintaining that no decision on the coal-fired mine’s future has been made. Photo: Supplied

THE Hazelwood power station is set to close in March next year as its foreign owners prepare to finalise the decision as early as this Thursday.

French energy giant Engie is publicly maintaining that no decision on the coal-fired mine’s future has been made.

But the Herald Sun understands it is likely to announce the closure as soon as Thursday, and that the plant’s doors would be shut for good early next year.

Speculation about the coal-fired mine has swirled for months after Engie admitted in May that it was considering selling or closing the plant, putting up to 1000 jobs in the Latrobe Valley at risk.

The imminent closure would also deprive the region of $100 million in wages every year, which local community groups fear cannot be easily replaced.

French media reported last week that Engie had settled on shutting Hazelwood and were awaiting approval from Japanese company Mitsui, which owns a 28 per cent stake.

Federal Environment Minister Josh Frydenberg travelled to Paris to meet with Engie representative and French government officials, saying afterwards that no formal decision had been made.

Energy Minister Lily D’Ambrosio said that the State Government “won’t leave the workers and families of the Valley behind”. Photo: Supplied

State Treasurer Tim Pallas also met with Engie in France earlier this month and said the government was “preparing ourselves for a scenario where Hazelwood may close”.

The State Government has established a Cabinet taskforce to prepare a rescue package for the Latrobe Valley, which would include substantial assistance for affected workers.

The government is also considering financial incentives to attract businesses to the region, as well as major improvements to services and infrastructure to stimulate the local economy.

But Mr Pallas said that while Engie was concerned about the capital costs of maintaining Hazelwood, the company would not be offered a bailout to keep the plant open.

Energy Minister Lily D’Ambrosio said that the State Government “won’t leave the workers and families of the Valley behind”.

“The Andrews Labor Government will ensure that the Latrobe Valley has a strong future, no matter what decision Hazelwood’s overseas owners make,” she said.

“We’ll keep standing with the Valley through whatever challenges the future holds”

Twitter: @tminear