Coalition backs Vales Point coal plant upgrade
The upgrade will add an extra 30MW into the electricity market and reduce emissions by more than 1 million tonnes.
A major upgrade of the Vales Point coal-fired power station has been backed by the Morrison government in a bid to fast-track an extra 30MW into the electricity market and reduce emissions by more than one million tonnes.
Energy Minister Angus Taylor has allocated $8.7m in support of Delta Electricity’s upgrade of its 1320MW Lake Macquarie coal plant, which currently provides 13 per cent of NSW’s generation capacity.
The power station upgrade, one of 12 projects shortlisted under the Morrison government’s Underwriting New Generation Investments program, will not extend the coal plant’s life beyond its planned closure in 2029.
Under an ad hoc grant process, Delta Electricity will need to submit a grant application to the Department of Energy to support its plant upgrade and “reduce emissions, improve efficiency and improve reliability”.
Mr Taylor said the additional electricity output from the NSW Hunter Region power station would contribute to the government’s 1000MW target.
“The Vales Point power station is a major supplier of electricity in NSW. This grant will make Vales Point more reliable, more efficient and deliver much needed dispatchable power in NSW,” Mr Taylor said.
“Importantly, the upgrades will also reduce emissions by more than one million tonnes. With the Liddell Power Station expected to close in 2023, securing additional reliable capacity in NSW has never been more important to keep prices low and the lights on.”
Resources Minister Keith Pitt — a vocal supporter of coal-fired power — said unlocking investment in the Vales Point upgrade would ensure “reliable, cheap electricity is available when it is needed”.
“Coal will remain a crucial resource for the global energy market for at least the next two decades and this is a sensible investment that will benefit NSW,” Mr Pitt said.
“Lower emissions technology, including carbon capture storage, will continue to make coal a cheap, reliable and attractive resource to power Australian homes and industry.”
The upgrade of the Vales Point station, which currently employs around 500 people along with its associated mine, will add 29 jobs during construction and deliver about 1.05 million tonnes of emissions abatement.
The coal-fired power plant, located in the Shortland electorate held by Labor MP Pat Conroy, currently operates two 660MW units.
Following the release of Scott Morrison’s gas recovery plan last month, Nationals senator Matt Canavan urged the government to support the Vales Point coal-fired power station upgrade.
The government earlier this year approved a $3.3m grant supporting a feasibility study into a new clean coal-fired power station in the marginal central Queensland electorate of Capricornia.
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