EnergyAustralia gives green light for Australia’s first net-zero hybrid power station

EnergyAustralia has announced plans to build a new power station that will be capable of using hydrogen and natural gas.

The New South Wales and federal governments have contributed $83 million to the 300-megawatt plant on the edge of Lake Illawarra, south of Wollongong.

The Tallawarra B power station will sit alongside the company’s existing Tallawarra A 435-megawatt gas plant.

The project will be fast-tracked to be operational by 2023–24 in a bid to help ensure reliable electricity supplies to the grid once the Liddell coal-fired 500-megawatt plant in the Hunter Valley closes.

“We are leading the sector by building the first net-zero emissions hydrogen and gas capable power plant in NSW,” said Energy Australia Managing Director Catherine Tanna.

“What’s particularly exciting is that further engineering studies will see if the amount of green hydrogen can increase, which will further support the Port Kembla Hydrogen Hub.

“Our new open-cycle, hydrogen and gas-capable turbine will provide firm capacity on a continuous basis and paves the way for additional cleaner energy sources to enter the system.”

A boost to the economy

EnergyAustralia will offer to buy 200,000kg of green hydrogen a year from 2025 which is equivalent to five per cent of the plant’s fuel use.

“This is expected to offset direct operational carbon emissions from the project over its lifetime,” Ms Tanna said.

The project is expected to deliver a $300-million boost to the economy and support about 250 jobs during construction.

The project was approved after an agreement was reached with the NSW government following ongoing negotiations.

“This project sets a new benchmark for how gas generators can be consistent with NSW’s plan to be net zero by 2050 by using green hydrogen and offsetting residual emissions,” said the state’s energy minister Matt Kean said.

More to come.