The Hunter Hydrogen Hub will drive new low carbon jobs and help to set up the regionfor the future, Mr Kean will say. Sep 18, 2022 - 3.16pm Energy entrepreneur Trevor St Baker and coal investor Brian Flannery will sell their Vales Point coal-fired power station in NSW for several hundred million dollars to. To learn more about how we use information collected with cookies, please read our Privacy Policy. [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. The Vales Point Power Plant is currently set for closure in 2029, but the EPA ruling delivered on 28 October 2022 could bring that date forward to 2025. 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. We will continue to invest in the station both for ongoing energy needs and for system security, said the spokesperson. Vales Point A power station (replacement) - Global Energy Monitor There are three methods to extract hydrogen. This page was last edited on 30 April 2021, at 11:25. Nitric oxide oxidises in the atmosphere to form nitrogen dioxide. With only an approximately seven-year operating life now remaining, and a very weak wholesale electricity forward curve, we believe Yallourns permanent exit may still be even earlier than now planned, Goldman Sachs analyst Baden Moore said. Thermochemical reactions drive the other two methods. No need to search elsewhere for all the latest updates on the electricity market and energy-efficiency tips that are important for you, the savvy business owner. 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. Sev.en has reputation for keeping old and polluting power stations open longer than their use-by date and has indicated the same for Vales Point. 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. . (Delta Electricity have also flagged the possibility of the proposed plant being built on the the site of the nearby Liddell power station, which is slated for closure in 2022. Our Morning Edition newsletter is a curated guide to the most important and interesting stories, analysis and insights. Vales Point coal-fired power station in NSW could be polluting in Delta Flagged Early Closure of Vales Point Coal Plant When I The owners of the Hazelwood coal plant in the Latrobe valley only provided five months notice ahead of its closure in 2017, which delivered a big blow to the workforce and Victorias power prices. We use "cookies" to enhance your experience on our website. Find them all here. 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. [6], Carbon Monitoring for Action estimates this power station emits 9.32 million tonnes of greenhouse gases each year as a result of burning hydrocarbon fuels.[7]. AGL Energy announced it would move the. Sign up to receive an email with the top stories from Guardian Australia every morning. Andy Saunders 1 year ago John John 1 year ago Andy Saunders 1 year ago The generation table uses eljmkt nemlog to obtain generation values for each year. 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. [2] However, in December 2021, the value of the plant was cut to $156 million and the annual profit was reduced 93% to $9.3 million. Vales Point Power Station is one of two operating coal fired power stations on the shores of Lake Macquarie, New South Wales. Sign up to Guardian Australia's Morning Mail, Our Australian morning briefing email breaks down the key national and international stories of the day and why they matter. 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. On Tuesday Kean said he was still expecting the plant to close by 2029, saying the state had plans in place to ensure that the capacity of Vales Point is replaced by that time. Childhood asthma in the region has also been found to be extremely high (50% greater than in Sydney in spite of city transport fumes) and there is strong evidence that students who attend schools within a 10 Km radius of a coal fired power station have a reduction in learning outcomes due to the emissions from burning coal. We will not spam you or sell your details. Mr St Baker said Evie Networks was moving into a capital-intensive phase with the rollout of 300 fast charging stations around Australia, while he was also involved in developing e-mobility in the Philippines. When queried, the department told RenewEconomy that the funding set aside in the budget was considered to represent value for money. Analysts identified particular economic risk for Vales Point coal power near Newcastle, the same region where NSW Energy Minister Matt Kean will today announce a $70 million fund to grow a green hydrogen industry, which he said would bring jobs and growth to the region. Sign up for our newsletter to stay up to date. In an application to the EPA, the power stations owners had requested a further five-year license exemption which allowed for the emission of more than 800mg per cubic metre of nitrogen oxide (NOx) per day. [3] The plan for a new 660-MW plant appears to be cancelled. Its like selling an unregistered car. the Liddell plant is owned by AGL which has rejected . We also request confirmation that Vales Point coal-fired power station will close in 2025 and will not receive another exemption licence. Two investors have bought one of NSW's largest coal-fired power stations for the price of a nice suburban house. 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. NSW has committed to reach net zero greenhouse gas emissions, and the Hunter region is zoned for renewable energy development to help reach the goal. 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. Sign up to The Sydney Morning Heralds newsletter here, The Ages here, Brisbane Times here, and WAtodays here. Mannering Park Progress Association spokesperson Sue Wynn said a new coal-fired power station at Vales Point was the worst news Mannering Park and surrounding areas could possibly hear. The turbines were removed in 1997; the boilers and buildings were demolished between 201114. Australia is positioning itself to tap the potential boom in hydrogen fuel, if its adopted globally as a replacement for petroleum. The NSW EPA noted that environment department modelling found that ground-level concentration of NOx in the community meets national health standards. 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? A failure to act is no longer an option, Mr Chappel said. Delta Coal which supplies Vales Point have an active proposal to continue mining largely exploited seams under the lake and ash dump until 2029 and community fears over worsening pollution impacts from this aging facility under this potential new ownership have been made public. Lake Macquarie Home Fishing Fishing closures, restrictions and permits Lake Macquarie The above closures are generated from the Fisheries Management (General) Regulation 2019 unless otherwise specified. Owners of Vales Point power station turn down $8.7 million grant, blaming the Morrison government for taking too long to approve funds for turbine upgrades. It is acidic, has an unpleasant odour and is highly corrosive. The facility is old, dirty, and poorly maintained. 1 to 3) and one of 275 MW supplied by Associated Electrical Industries (unit no. Several coal-fired plants in New South Wales have brought their closure dates forward. The largest coal plant in the state AGLs 2880 MW Eraring Power Station, will be closed in 2025. 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. Vales Point 'A' Station was decommissioned in 1989. 287 Elizabeth Street Delta said it did not make financial sense to proceed with the upgrade with the smaller grant amount, given ongoing uncertainty in the energy market and the looming closure of the power station, currently slated for 2029. [1], In 2017 it was valued at $732 million, and was estimated to make part-owner energy entrepreneur and former National Party candidate Trevor St Baker a half billionaire. 4), for a total of 875 MW. The decision by the EPA now allows for these conditions and limits to remain in Deltas Environmental Protection Licence, Delta spokesman Steve Gurney said. In our view, the risk of accelerating coal generation closures is increasing as the market makes room for the rapid addition of renewable generation.. In December 2017, Origin Energy announced that it would close the . Currently the sale is under investigation by the Foreign Investment Review Board (FIRB) with its decision to be announced in mid-October 2022. The Vales Point Power Plant is currently set for closure in 2029, but the EPA ruling delivered on 28 October 2022 could bring that date forward to 2025. Lake Macquarie - Department of Primary Industries To learn more, read our Privacy Policy. Vales point already has an exemption licence to pollute over and above NSW emission controls. Were carefully considering it and its an important decision to make and well be making that public shortly, he said. 15 December 2021. The study also criticized the absence of air pollution monitoring within 25 km of Eraring and the nearby Vales Point power station. Vales Point is located on the southern shore of the lake, near the township of Mannering Park. [5] The balloon loop opened in March 1980. The funding was to be provided as an ad hoc grant under the Morrison governments Underwriting New Generation Investments (UNGI) program, meaning the funds could only be used for Delta Electricitys proposed upgrades. Vales Point power station - Global Energy Monitor 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. With this acquisition we will significantly strengthen our presence in Australia, said Sev.en chief executive Alan Svoboda. When there are renewable energy alternatives available, like the Star of the South project, that will generate clean energy and create local jobs, there is no excuse for building more, big polluting coal projects that pollute our air and make our communities sick, Ms Rivers said. Vales Point provides 11% of NSW electricity. Energy Australia to close Yallourn power station early and build 350 In a statement Mr St Baker highlighted the buyers commitment to growing the business. 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. Anger as public funds extend life of dirty Vales Point power station We know that the emissions meet the National Environment Protection Measures for NOx, but weve got the environment groups position. Vales Point is located on the southern shore of the lake, near the township of Mannering Park. The EPA also stipulated that Delta must investigate, mitigate and report on the causes of NOx emissions when the 1320-megawatt generator operates at less than half its capacity. 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. 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.. Energy Australia will close the Yallourn power station in Victoria's Latrobe Valley in mid-2028, four years ahead of schedule, and build a giant battery instead. Wikimedia. On the international front the Morrison government has committed $70 million to help develop a regional hydrogen export hub, and Australia has signed agreements with Japan, Korea, Germany and Singapore to investigate hydrogen supply chains. 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. Plunging energy prices sink Vales Point power station The coal-fired Vales Point power plant in New South Wales must cut nitrogen oxide emissions within two years or may face early closure after a ruling by the Environment Protection Authority. 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 already have really low NOx emissions, lower than Bayswater and Mt Piper, and we are doing operational changes, and we believe that we will meet whatever the requirements are going to be.. Custom Content. Kean confirmed exemptions granted to Delta during the purchase including a cap of $10m on rehabilitation likely to cost hundreds of millions of dollars would remain in place despite the sale. At the same time, embattled AGL Energy is struggling to determine its forward strategy and put in place a refreshed board after the collapse of a demerger plan and as its biggest shareholder, software billionaire Mike Cannon-Brookes, pushes for a faster exit from coal power to align with the goals of the Paris climate accord. Mr Taylor set a January 23 deadline for 24 hour baseload reliable projects eligible for government underwriting. The power stationed operated from 11 March 1927 until March 1976. Follow us on LinkedIn, Facebook or Instagram. 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. Mr St Baker would not reveal the price of the deal, but said we didnt get close to $700 million. . Early closure of Australia's largest coal-fired plant could create The power station's end of technical life is set for 2029. We continue to invest in the reliability of Vales Point to its notional closure in 2029. 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. As outlined in the budget speech and subsequent announcement, the budget allocation has a funding cap of $8.7m, which is below that which Delta requested, leaving a substantially higher quantum of funding by Delta, Delta said in the letter. The Vales Point coal power station was sold by the NSW government in 2015 for just $1 million. 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 proposal isin response to Federal Energy Minister Angus Taylors call in September for fair dinkum baseload power generation after the Federal Government lost a public battle with generator AGL over the closure of Liddell power station in 2022. In order to supply coal to the station, three mines were opened; Chain Valley Colliery, Newvale No.1 Colliery and Wyee State Mine. The EPA ruling has fuelled concerns that NSW may face an energy supply crunch in the coming years as coal swiftly exits the market. Unit no. Private owners net millions in sale of ageing coal-fired power station in NSW, Original reporting and incisive analysis, direct from the Guardian every morning. The Stop the Sale of Vales Point Power Station and Close It Down petition to Australian Treasurer Jim Chalmers & NSW Treasurer Matt Kean was written by Future Sooner and is in the category It has been announced that the ageing Vales Point coal-fired power station on the Central Coast, NSW is to be sold by the Australian Delta Energy to the Czech fossil fuel investment company Sev.en, owned by billionaire Pavel Tyka. It is one of the chief causes of yellow-brown smog. Delta also blamed ongoing regulatory and policy uncertainty, which it said, does not represent an appropriate investment environment.. air pollution exemption granted to Vales Point power station by the NSW EPA was successfully challenged by environment and legal groups. Tap into Getty Images' global scale, data-driven insights, and network of more than 340,000 creators to create content exclusively for your brand. 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. He dismissed the suggestion that Vales Point would close earlier than 2029, particularly given the impending closure of its near neighbour, Liddell Power Station, in 2023. The announcement today by Original doesnt change Vales Points position, said the spokesperson. Records date back to 2011. Yalloun Power Station closure to put Newcastle's Vales Point in Sold for a song in 2015, the site is expected to be the subject of a new coal-fired power station proposal. Your digital subscription includes access to content from all our websites in your region. The Vales Point coal-fired power station near the shores of Lake Macquarie, in NSW. Read our Privacy Policy. 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. 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 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. Phone: 02 4352 6111 Correspondence obtained through an earlier FOI request shows that Delta Electricity and the department undertook negotiations throughout 2020, ahead of funding being awarded in the federal budget. Delta flagged early closure of Vales Point coal plant when it rejected "Hundreds of thousands of people living near Australia's largest power station do not know what they are breathing," the report states. Delta Electricity knocked back in February a $9 million government grant to upgrade one of the plants turbines. Transitioning the Hunter and Central Coast from a fossil fuels manufacturing base to one of renewable generation is underway. Cockle Creek Power Station was located in Teralba, New South Wales, Australia on the banks of Cockle Creek. Vales Point Power Station - Wikipedia 49 Vales Point Power Station Premium High Res Photos 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 is facing a potential shortage of reliable power as coal power stations shut down, with the closure of AGL Energy's Liddell plant in the Hunter Valley in April 2023 set to be followed. On this basis, Delta respectfully and regrettably advises that it will not submit an application for UNGI grant for the proposed Vales Point power station efficiency upgrade project, Delta Electricity said. Its a two years exemption, then we can apply for another period of time. The Nature Conservation Council of NSW said that, unlike previous exemptions, this one cannot be extended beyond October 2027.