EnergyAustralia in NSW coal power upgrade
EnergyAustralia will boost the capacity of its Mt Piper coal power station, and may expand coal supplies.
EnergyAustralia will boost the capacity of its Mount Piper coal power station in NSW and is investigating options to expand coal supplies to safeguard against disruption to its existing mine.
With the closure of AGL Energy’s Liddell plant scheduled in 2022, the power giant said it was investing to increase output by 80 megawatts to 1480MW through the upgrade of its two existing turbines. Mount Piper - scheduled to operate until 2043 - can provide 15 per cent of NSW’s electricity demand.
“For EnergyAustralia and other companies, competing to replace Liddell is a big opportunity, one we’re looking forward to,” EnergyAustralia managing director Catherine Tanna said.
“We think the answer lies in a mix of renewables, gas, coal and transmission upgrades.
“The upgrade means Mount Piper will be able to power an additional 55,000 homes without burning a single, additional lump of coal.”
Companies are weighing how to adapt to the changing power grid as ageing plants like Liddell exit and renewables works their way into the system.
Coal plant owners in NSW like EnergyAustralia, along with Origin Energy and Trevor St Baker’s Delta, are considering either new investment in plants or tweaking output to maximise demand for coal amid cheap solar supplies during the day.
EnergyAustralia will also look to expand its sources of supplies after disruptions from the nearby Springvale mine near Lithgow run by Centennial Coal ,with the product potentially being trucked in from the Clarence mine instead.
“EnergyAustralia is investigating rail transport options to diversify coal supply to the power station,” the company said. “Historically, there were six local mines capable of supplying Mount Piper. Now there’s just one – Springvale – and it is facing a series of operational and planning challenges.”
EnergyAustralia referenced the Mount Piper supply issues in a recent trading update which warned of a big fall in operating profit this half.
EnergyAustralia and Centennial are also investing in a new $200 million water treatment facility to handle mine water from the Springvale coal mine to re-use in the cooling system of the Mount Piper plant.