Hazelwood power station to close in March 2017

AUSTRALIA’S ‘dirtiest’ power station will close in a matter of months, leaving hundreds in the region out of work.

Hazelwood power station sits behind dairy cattle in the La Trobe Valley in Morwell, Victoria. Workers were today told operations will cease in March 2017. Picture: Julian Smith

THE French majority owners of Australia’s most notoriously “dirty” power station, Hazelwood, have confirmed the Victorian station and its mine will close at the end of March 2017.

Engie, an electricity generation and energy retail business jointly owned by global companies ENGIE and Mitsui, made the announcement about the Latrobe Valley asset on Thursday.

“The closure of Hazelwood is in line with ENGIE’s strategy to gradually end its coal activities,” the company said in a statement.

“This is laid out in the Group’s transformation plan that aims at concentrating solely on low-carbon projects for power generation, renewable energy and natural gas.

“In 2016, ENGIE has already sold or closed coal assets which represent more than 5 GW of capacity.”

Hazelwood power station in Australia to close at the end of March 2017 https://t.co/mYjs5mTsPY

— ENGIE (@ENGIEgroup) November 3, 2016

@GedKACTU’s official statement on the closure of #Hazelwood. Sympathy and solidarity w the families. #ausunions https://t.co/9hjw6dSTI2

— Australian Unions (@unionsaustralia) November 3, 2016

Engie Australia chief executive Alex Keisser said Hazelwood — which is more than 50 years old — had been a wonderful contributor to the national electricity market “but we have now reached the point where it is no longer economic to operate”.

“Engie in Australia would need to invest many hundreds of millions of dollars to ensure viable and, most importantly, continued safe operation,” he said.

“Given current and forecast market conditions, that level of investment cannot be justified.”

An “extremely difficult” decision had been taken to close all eight generating units by March 31.

Engie is committed to fully supporting 750 Hazelwood workers, comprising 450 direct worker and 300 contractors.

Some 250 people will still be needed for rehabilitation works at the coal mine and power station sites between 2017 and 2023.

Hazelwood Power Station and its cooling pond in the Latrobe Valley, Victoria. Picture: David Crosling

The federal government has announced a $43 million assistance package for the Latrobe Valley.

Federal Energy Minister Josh Frydenberg on Thursday said the package would include $20 million for new infrastructure projects in the region and $20 million for the Latrobe Valley to become the country’s 10th regional jobs and investment project.

There’ll also be $3 million for job assistance, retraining and financial services support for affected workers.

“Our sympathies go out to the workers and to their families,” Mr Frydenberg told reporters in Melbourne.

He welcomed a commitment by co-owners Engie and Mitsui to “meet the entitlements of their workers in full”.

A joint federal and state government task force has been established to support the Latrobe Valley community.

Prime Minister Malcolm Turnbull spoke with Victorian Premier Daniel Andrews on Thursday. The Commonwealth’s $43 million package is on top of $42 million in support funds from the state Labor government.

“This is a very, very tough time for the valley,” Malcolm Turnbull told reporters in Sydney on Thursday ahead of French owners Engie officially announcing the closure.

The PM said the federal government had established a ministerial task group “to provide the support the community needs to ensure there are jobs and opportunities for the workers that will lose their jobs as a result of this power station closing”.

Today is as tough as it gets for people in the Latrobe Valley. Under Labor, they won't be left behind. #Hazelwood https://t.co/WPPRse4H9i

— Daniel Andrews (@DanielAndrewsMP) November 3, 2016

The #Hazelwood closure is a body blow to the #Latrobe Valley. Here are 4 things government and industry leaders can do to help. #gippsnews pic.twitter.com/EgxUaFlj5B

— VCOSS (@VCOSS) November 2, 2016

The federal government would work with the state Labor government in a “collaborative way”, Mr Turnbull said.

“Our thoughts today are with the tough times for the men and women who work at Hazelwood and of course the many others in that community whose jobs depend on that power station.”

The closure of Victoria’s Hazelwood coal-fired power station leaves the community facing an uncertain future.

Morwell Newsagency owner Ray Burgess says the town is bracing for the worst. “We’re fearful it will be a cold shutdown,” Mr Burgess told AAP on Thursday.

“The mood is sombre because we understand it will be shut in March or April next year rather than a staged shut down.

“It’s going to feel like we’ve lost something because it has been plugging away out there for years” Ken Dunn, who had just finished night shift, says workers are “gutted” by news of the closure.

“We’ve heard more from the news than we’ve heard from the management,” Mr Dunn told 3AW.

He said most of the 700 workers at the plant are aged between 50 and 55 — too young to retire and too old to start a new career.

The Climate Institute said the federal government’s reluctance to plan for Australia’s transition to net zero emissions was setting up more shocks for communities.

“Forward-looking businesses are planning for a world with net zero emissions, and it’s time the

government did the same,” The Climate Institute CEO John Connor said.

Mr Connor said the decision came a day before the Paris Agreement becomes international law and the government needed to start investing in replacement industries in communities like the Latrobe Valley, and replacement clean energy services, well before coal stations closed, not after their retirement has been announced.

“The federal government can no longer just leave it to the power companies themselves to decide if and when to close coal stations. Nor can it keep clinging to its weak 2030 climate target made in August 2015, which is inconsistent with both Paris goals and global energy trends,” he said.

“It’s just a six months since the shock closure of South Australia’s Northern coal station, which caused great disruption to people living and working in Port Augusta. Now it’s the Latrobe Valley. Which coal station in which state will be next? We don’t know.

“This is why we need a nationwide plan. If we plan and invest ahead of time we are better placed to cope with the challenges of the inevitable transition. Without this our communities will face much more stress, our energy system will face continued shocks and investment in clean energy will face ongoing uncertainty.”

CFMEU mining secretary Geoff Dyke outside Hazelwood Power Plant. Picture: David Geraghty