The Hunter Hydrogen Hub will drive new low carbon jobs and help to set up the regionfor the future, Mr Kean will say. It leaves the Morrison governments UNGI program has still having supported no new generation investments, despite being first announced in October 2018, and announcing a dozen shortlisted projects more than two years ago. Australia's fleet of coal-fired power stations are aging and many are due for decommissioning, and are being replaced by a combination of mostly renewable energy. Granted in December last year, the exemption allows the operators to emit a higher level of nitrogen oxide than usually allowable under clean air regulations. The value of the NSW coal power plant was cut to $156 million, down from $732 million in 2017 when power prices skyrocketed after the closure of the Hazelwood power station, documents. Your digital subscription includes access to content from all our websites in your region. . Read more:The power station offloaded by the NSW Government for $1 million suddenly has a future. The sale, which was handled by RBC Capital Markets, takes Mr St Baker out of coal power at a sizeable profit on paper. A Morrison government plan to fund upgrades at the Vales Point coal fired power station fell through after the government offered insufficient funding for the upgrades to take place, with owners Delta Electricity warning the plant could close early, documents obtained under FOI show. There are three methods to extract hydrogen. The grant was to pay for upgrades to a turbine at the Vales Point power station, increasing its thermal efficiency, allowing an additional 30MW of output for the same amount of coal burnt. [citation needed], In November 2015, the Government of New South Wales sold Delta Electricity, which at that time owned only the Vales Point Power Station, to Sunset Power International for $1 million. Coal plants list deadlines when their operating life is set to cease, but Dr Mountain said Victoria has secured a valuable guarantee that Yallourn will be available to produce until 2028, and if the company brings forward closure the state will receive compensation. Delta flagged early closure of Vales Point coal plant when it rejected federal grant | RenewEconomy 1 year ago Kim Grierson 1 year ago 1 year ago Apparently NSW retained the decommissioning liabilities Andy Saunders 1 year ago Prices that make it profitable? Wholesale power prices are meanwhile several times higher than the $40-$45 megawatt-hour range that prevailed when he and billionaire partner Mr Flannery bought the generator. Federal Energy and Emissions Reduction Minister Angus Taylor said last month that the industrys potential cannot be ignored and argued that Australia can attract $70 billion of investments over the next decade. It was commissioned in 1978 and is located on the southern shore of Lake Macquarie. This site uses "cookies" to give you the best experience on this website. A licence granted last year exempts the operators of the Vales Point plant, recently sold to Sev.en Global Investments, from nitrogen oxide pollution standards. The owner blamed the COVID-19 pandemic for reducing demand and an influx of cheaper renewables reducing wholesale electricity prices. Two investors have bought one of NSW's largest coal-fired power stations for the price of a nice suburban house. On this Wikipedia the language links are at the top of the page across from the article title. As of 2021, the Vales Point Power Station emits more toxic nitrogen oxide pollutants than allowable under the NSW Protection of the Environment Operations (Clean Air) Regulation 2021 in order to continue to legally operate (or otherwise cease operating), the operator applied for an exemption under its licence 761,[8] which was granted on 15 December 2021 with a reduction variation and additional conditions imposed by the New South Wales Environment Protection Authority. In 2022, an air pollution exemption granted to Vales Point power station by the NSW EPA was successfully challenged by environment and legal groups, who argued that community health impacts of toxic air emissions - including childhood asthma and premature deaths were - being ignored, pointing out that Vales Point routinely breach NSW air protection laws. A failure to act is no longer an option, Mr Chappel said. Delta chief executive Greg Everett said the proposed deal, which has yet to be approved by the Foreign Investment Review Board, was a positive development for Delta and its stakeholders. NOx emissions can harm peoples health, contribute to respiratory illnesses and can cause asthma in children and the elderly. Vales Point Power Station is one of two operating coal fired power stations on the shores of Lake Macquarie, New South Wales. 4 was brought into use in 1966. Newcastle GP andpublic health academic Dr Ben Ewaldsaiddata from existing Hunter and Central Coast power stations provided more evidence of the need to replace old coal-fired power stations with renewable energy. AGL said it was still committed to its plans for Liddell. One uses gas and the other uses coal or gas, and for either to be a clean energy source they require carbon capture and storage to stop the emissions from the fossil fuels entering the atmosphere. It also followed a dramatic increase in fine particle pollutionconfirmed by Vales Points own data in 2017. Currently the sale is under investigation by the Foreign Investment Review Board (FIRB) with its decision to be announced in mid-October 2022. Its a two years exemption, then we can apply for another period of time. Alinta Energys Hong Kong-based owner Chow Tai Fook Enterprises is understood to have fielded approaches for the Australian business, which includes the large Loy Yang B coal power generator in Victoria. All rights reserved. However, the company also flagged that it remained open to shifting the closure date of the Vales Point power station, which was dependent on the prevailing conditions in the energy market. As previously revealed by RenewEconomy, Delta told the Department of Industry, Science, Energy and Resources in December that it would not proceed with a formal application for $8.7 million in grant funding that had been set aside in the 2020 federal budget. Wikimedia. This means that every time you visit this website you will need to enable or disable cookies again. Origin Energys 2000 MW Liddell plant will close in early 2023. [3] The plan for a new 660-MW plant appears to be cancelled. One is electrolysis that uses electricity to split water, which can be powered by renewables in an emissions-free process and is known as green hydrogen. It has two steam turbines, with a total generating capacity of 1,320 MW (1,770,000 hp) of electricity. The Nature Conservation Council of NSW said that, unlike previous exemptions, this one cannot be extended beyond October 2027. Sydney, NSW 2000 By 2050, green hydrogen has the potential to drive $350 billion in investment across Australia in current dollars and up to $26 billion per year in additional GDP, supporting the emergence of new decarbonised industries such as green steel and ammonia.. Were carefully considering it and its an important decision to make and well be making that public shortly, he said. Health at GoPetition. POWER magnate Trevor St Baker is expected to lodge a proposalwith the Federal Government today for a new Hunter or Central Coast coal-fired power station with a Chinese joint venture partner. We call on Federal Treasurer the Hon Dr Jim Chalmers and the NSW Treasurer and Minister for Energy, the Hon Matt Kean, to refuse the proposed sale of Vales Point Power Station to Czech company Sev.en. Andy Saunders 1 year ago John John 1 year ago Andy Saunders 1 year ago To learn more, read our Privacy Policy. The energy and materials can be provided by either renewable power and water, orcoal and gas. It produces about four per cent of the electricity supplied to consumers in the National Electricity Market. The Cockle Creek power station was built by Caledonian Collieries Limited between 1925 and 1927 to use low grade coal to provide power to Caledonian Collieries mines and the surrounding townships in both the . Vales Point is a coal-fired power station which supplies baseload electricity. These four units were known as 'A' Station, its capacity of 875 MW being the highest in New South Wales at the time. Nitric oxide oxidises in the atmosphere to form nitrogen dioxide. 1 to 3) and one of 275 MW supplied by Associated Electrical Industries (unit no. The generation table uses eljmkt nemlog to obtain generation values for each year. With this acquisition we will significantly strengthen our presence in Australia, said Sev.en chief executive Alan Svoboda. At a budget estimates hearing last month, Stephen Beaman, a senior regulator at the EPA, said the agency would be finalising its position very shortly on the legality of the exemption. Coal plant closures loom large as NSW backs hydrogen for the Hunter. Mr St Baker would not reveal the price of the deal, but said we didnt get close to $700 million. The sale price was not included in the press statement released on Saturday, December 17. It is also harmful to the environment. While Delta secretary Steve Gurney said the sale of Vales Point was a completely unrelated commercial matter to the emissions issue, Nature Conservation Council chief executive, Jacqui Mumford, said the new owners should be required to slash the stations pollution so that people across NSW can breathe healthier air. At Delta, which supplies about 11 per cent of NSWs power, RBC is thought to have run a process to sell either 50 per cent or 100 per cent, with Mr St Baker originally keeping open an option to retain his stake. In a letter obtained by RenewEconomy, Delta told the department that the funding was below the amount of funding the company had requested and left the company carrying too much of the cost. To disable your cookies, please click on Settings. The pair, who famously bought the generator for $1 million from the NSW government in 2015 and then revalued it at $722 million two years later, agreed to sell their respective 50 per cent stakes in Delta Electricity, the owner of the plant, to the family company Sev.en Global Investments. Sign up to The Sydney Morning Heralds newsletter here, The Ages here, Brisbane Times here, and WAtodays here. The proposed plant would adjoin the existing 1320 MW Vales Point power station owned by Delta Electricity. Its coal. That, environment groups say, has given new urgency for the NSW Environment Protection Authority to clarify the legality of a pollution exemption provided to the plant late last year. Victoria Energy Policy Centre director Bruce Mountain said the Victorian government had struck an entirely sensible deal with EnergyAustralia to bring forward closure at Yallourn, which provided a long lead time of seven years for the market to fill gaps in power supply by 2028. These are known as blue hydrogen. . We oppose this sale as it is NOT in the local, state or national interest: Proponents of renewable energy and some business leaders haveraised concerns that financial supportfor hydrogen production powered by fossil fuels could artificially prolong the operation of the nations ageing fleet of coal-fired power stations, or create demand for gas which would be better directed to wind and solar projects. The transaction still needs to be completed, with approval from the Foreign Investment Review Board outstanding. A Morrison government plan to fund upgrades at the Vales Point coal fired power station fell through after the government offered insufficient funding for the upgrades to take place, with owners Delta Electricity warning the plant could close early, documents obtained under FOI show. Sign up for our newsletter to stay up to date. Its also unknown how the sale will impact the rehabilitation responsibilities for the power station ash dumps, she said. This page was last edited on 30 April 2021, at 11:25. Mr St Baker said he was looking for international investors after Australian banks and major lenders ruled out exposure to coal project funding, in part because of climate change stranded asset risks. Contents 1 Location 2 Background on Plant 3 Carbon capture project 4 Environmental Impact 4.1 Air pollution 4.2 Coal ash dam 5 Future shutdown date 6 Interest in buying Liddell coal plant Were working to restore it. But Tom Allen, director of Australian energy and utilities research with UBS, said the markets focus would be on the long-term viability of black coal-fired generators in NSW, particularly amid the NSW governments plan to ramp up renewable energy investment, which will place prices under further pressure. Given that the ongoing operation of the Vales Point power station remains subject to market forces, and noting the current forecast closure date of 2029 may come forward or be deferred on the strength of these market forces, the benefits arising from the remaining life of Vales Point power station and the proposed project have been diminished by the passage of time, Delta said. Victoria's potential crunch comes with the 2028-29 closure of the Yallourn power plant in the. Mr . Whoever owns these assets, I want to make sure they are acting in the interests of the citizens of this state, not for vested interests, he said. In addition to its stake in InterGen, which has interests in the Millmerran and Callide power stations in Queensland, Sev.en owns four gas-fired generators in the UK and one of the largest metallurgical coal producers in the US, called Blackhawk Mining. The black coal operators run at a much higher short-run marginal cost and so those nearing the end of their technical lives may be re-evaluating their closure dates, Mr Allen said. Follow the topics, people and companies that matter to you. The Vales Point coal-fired power station near the shores of Lake Macquarie, in NSW.Credit:James Whelan. The first two units were completed in 1963, and the third in 1964. Only this week did the Federal Government flag that commercial interest in the Hunter-Central Coast Renewable Energy Zone (REZ) has been significant. In February, Prime Minister Scott Morrison promised Liberal party donor and part owner Trevor St Baker that an $11 million grant would be going his way to make upgrades. If you want to be updated with all the latest energy sector news, you can sign up for our newsletter or visit our blog section. Vales Point uses salt water from Lake Macquarie for cooling. News and analysis for the clean energy economy. It is also gearing up to invest more in the business as it seeks approval for a license to allow mining to continue until 2029. The Vales Point power station has been operating on the shores of Lake Macquarie since the 1960's and was constructed before NSW environmental protection laws came into effect. The report,China at a Crossroads: Continued Support for Coal Power Erodes Countrys Clean Energy Leadership,found Chinese financial institutions and corporations funded more than 25 per cent of all new coal plants outside China in 2018, or $35.9 billion for projects in 27 countries, excluding Australia. The power stations end of technical life is set for 2029. Delta said it complies with the reduced limits for emissions imposed in December 2021 and noted that Vales Point has lower licence limits for NOx than some other generators in NSW such as AGL Energys Bayswater and EnergyAustralias Mt Piper plants. Publicly owned until 2015 when sold to Sunset International Power for $1 million, the deal capped the new owners site rehabilitation costs to just $10M. The Toshiba 660 MW turbo-alternator became the standard in New South Wales, with similar units later being installed at Eraring, Bayswater and Mount Piper. Meanwhile, EnergyAustralias owner CLP Group, also based in Hong Kong, is in the market for partnerships to support future investments to support the decarbonisation of the countrys third-largest power and gas supplier. The other legacies of coal power include environmental and community impact that cannot be ignored as the closure of power stations take place in NSW. This field is for validation purposes and should be left unchanged. Access unlimited content, the digital versions of our print editions - Today's Paper, as well as the Newcastle Herald app. But Delta managing director Greg Everett described the objections raised about the time limits for its application for an exemption as an administrative interpretation issue, not an environmental one. Delta Electricity knocked back in February a $9 million government grant to upgrade one of the plants turbines. The turbines were removed in 1997; the boilers and buildings were demolished between 201114. We do not want this in foreign hands. The power station's end of technical life is set for 2029. Energy analysts said the renewables-led collapse in average prices across the nations electricity grid was so severe that the 1480-megawatt facility supplying up to 22 per cent of the states power could close even sooner than expected. The expectation has been that the power station would close in 2029 and the clean-up could begin., Vales Point on southern Lake Macquarie stayed in government hands until 2015, when the Coalition state government controversially sold it to energy entrepreneurs Trevor St Baker and Brian Flannery for $1 million., 167 Parry Street,Hamilton East, NSW, 2303, AboutCampaigningResearch & ReportsSubmissionsVolunteerHCEC NewsMedia ReleasesEventsContact UsCommittee Records, Barrington - Hawkesbury Climate Corridors Alliance, Water pollution Datawatch: NSW power stations. Coal supplies NSW with an average of 63 percent of its energy requirements, while the National Energy Market average is 59 percent. The EPA granted Delta an exemption to the licence, however, the exemption went hand in hand with an order to reduce daily levels. Every time an old coal-fired power stations closes to be replaced by renewable energy, theres an immediate health benefit to communities within 100 kilometres of the facility, Dr Ewald said. Hydrogen is a rare element which means it needs to be manufactured. As owners for the last eight years, Esprey and St Baker Family Trust have positioned the business to continue essential operations through the energy transition, but recognise that there are opportunities to grow the business and that this can be better accomplished in a portfolio with Sev.ens other base-load capable generation interests, he said. However. Coal is carbon. Cooking with gas: How bad for your health is it, really? Mr St Bakers proposal was also raised as the Federal Government approved the controversial Wallarah 2 underground coal mine north of Wyong, leading critics to warn the government could kiss goodbye to the Liberal-held Central Coast seat of Robertson because the community strongly opposes amine in the regions water catchment. This week Delta Electricity announced it sold the 1,320-megawatt Vales Point power station, located in the states Hunter region, to Sev.en Global Investments, owned by Czech billionaire Pavel Tyka. Future Sooner, local residents and health professionals are deeply concerned if this sale goes ahead it will extend the life of this filthy, old, polluting coal-fired power station and prolong the damage that is already affecting our health, said Gary Blaschke OAM, resident of Lake Munmorah, cancer sufferer and Future Sooner spokesperson. 15% of Wyong and 11% of Gosford population suffer from 3 or more chronic health conditions including asthma, cardiovascular disease and diabetes, compared to 5% or less across Sydney. The analysis found if power prices continued to decline, Yallourn, along with the Eraring, Mt Piper, Vales Point B and Gladstone black coal plants would be making a loss by 2025. NSW taxpayers might have to pay some remediation costs associated with the closure of Origin Energy's Eraring coal-fired power station when it shuts down in 2025. 4), for a total of 875 MW. Key points: Energy Australia will build a 350 megawatt, utility-scale battery in the Latrobe Valley by the end of 2026 The giant coal-fired Yallourn plant has been operating for 47 years The largest coal plant in the state AGLs 2880 MW Eraring Power Station, will be closed in 2025. It listed Eraring, Vales Point and Mt Piper in NSW and Yallourn in Victoria as most vulnerable. The sale will facilitate this growth as Sev.en has shown a commitment to the sector and an ambition to expand, both in Australia and globally.. Vales Point provides 11% of NSW electricity. Environment Justice Australia and the Nature Conservation Council have questioned whether the renewal of a licence granting the plant operators exemptions from some pollution standards for nitrogen oxide is valid because, they say, Delta applied for the renewal after the deadline. Environmental Justice Australia director of advocacy and research, Nicola Rivers, said it was gob-smackingthe Australian Government would look to Mr St Baker as they seek energy solutions for the future, particularly given his companies rejection of infrastructure to limit pollution from existing power stations. In order to supply coal to the station, three mines were opened; Chain Valley Colliery, Newvale No.1 Colliery and Wyee State Mine. Delta Energys plans for Vales Point power station at Mannering Park will go unchanged despite the announcement by Origin Energy on February 17 that it will close Eraring Australias largest power station seven years early. Environment groups question whether ageing stations exemptions from some pollution standards are valid. . Delta Electricity, which is jointly owned by Trevor St Baker and Brian Flannery, announced early in 2019 that it was seeking support for the proposal from the Australian Government's Underwriting New Generation Investments program. In 1978, two Toshiba 660 MW units were added, becoming "B" Station. This will benefit customers, employees and system security for all energyusers.. NSW plant closures include the Vales Point power station, scheduled to shut in 2029-30. St Baker said that financing the projects would not be sought from Australian banks but instead would rely solely on international lenders. . Michael Mazengarb is a Sydney-based reporter with RenewEconomy,writing on climate change, clean energy, electric vehicles and politics. Unit no. The ageing Vales Point coal-fired power station on the New South Wales Central Coast, due to close in 2029, was given a stay of execution in the federal budget. Delta Coal which supplies Vales Point have an active proposal to continue mining largely exploited seams, ommunity fears over worsening pollution impacts from this aging facility under this potential new ownership, RSVP for updates and an invitation in 2023. He floated the proposal only two weeks after the NSW Environment Protection Authority ordered Vales Point owner Delta Electricity to clean up a huge part of the power stations ash dam after dumped asbestos was found in building waste fill. Commercial interest has been registered in 24 solar energy projects; 13 onshore and seven offshore wind energy projects; 35 large-scale batteries and eight pumped hydro projects. Vales Point power station, also referred to as the Vales Point B power station, is a 1,320-megawatt (MW) coal-fired power plant in New South Wales, Australia. In 2021, the Vales Point Power Station emitted more toxic nitrogen oxide pollutants than allowable under the NSW Protection of the Environment Operations (Clean Air) Regulation 2021. It is acidic, has an unpleasant odour and is highly corrosive. Solar feed-in tariffs cut again, despite much higher wholesale grid prices, How to double your old homes energy rating: Lessons from two efficiency retrofits, All-electric Polestar doubles sales, boosts margins as it prepares more EV models, EV battery recycler hits 95% recovery rate in world-first collection program, Electric vehicles grab record 6.8 pct share of Australia market as Tesla rules again. The role of Deltas Vales Point power station in two devastating fish kills that took place in mid-2002 in Wyee Bay are currently under investigation by the NSW EPA. NSW coal region councils join forces for huge renewable energy mandate, Japans pivot to renewables will kick Australian exports right in the thermals. September 2022 Delta Electricity agreed to sell to Czech company, Sev.en Global Investments. The Vales Point coal-fired power station is expected to close in 2029 and there's concern the upgrade will extend this date even thought it's limited by state approvals, wiping out any emissions reduction benefits from the works. Vales Point was originally equipped with three turbo-alternators of 200 MW supplied by the English Electric (unit nos. the Liddell plant is owned by AGL which has rejected . Managing director Greg Everett said the decision was not due to plans for an early closure, but rather the grant approval process and timing did not meet the companys own timeline for having works completed. "Hundreds of thousands of people living near Australia's largest power station do not know what they are breathing," the report states. While the Chinese government has signalled it will restrict coal lending, the country has yet to formally limit its investment in coal plants, the IEEFA report said. We also request confirmation that Vales Point coal-fired power station will close in 2025 and will not receive another exemption licence. Future Sooner is a community action group working towards a clean energy future for the Central Coast and Lake Macquarie. Vales point already has an exemption licence to pollute over and above NSW emission controls. Feb 18, 2022 - 5.07pm. In its home market, it runs two coal power generators and two combined heat and power plants. The deal comes amid an extended period of turbulence in baseload power generation in the National Electricity Market as cheap renewable energy flowing on to the grid makes it harder to operate baseload coal plants profitably, even amid surging prices for wholesale electricity. He noted the deal includes a coal mine that supplies the 1320-megawatt Vales Point generator and that the plant is in good order. In December 2017, Origin Energy announced that it would close the . Cockle Creek Power Station was located in Teralba, New South Wales, Australia on the banks of Cockle Creek. It has previously been reported that the EPA briefed the states environment minister, James Griffin, over concerns about the exemption, as well as seeking approval to pay a senior barrister for advice on the legality of the exemption. 15 December 2021. Vales Point A (replacement) power station is a proposal by Delta Electricity to build a new 660 MW plant on the site of the demolished Vales Point A plant in New South Wales, Australia. Its like selling an unregistered car. 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