Kurri Kurri Gas Plant Nearing Completion

28 August 2024

The Hunter Power Project (HPP), located in Kurri Kurri, New South Wales, is nearing completion and is poised to play a crucial role in Australia’s shift towards renewable energy. The gas-fired power station, developed by Snowy Hydro, is designed to provide 660 megawatts (MW) of dispatchable power, helping to stabilize the grid as the country phases out coal-fired power stations like the Liddell Power Station, which closed in April 2023.

The HPP is being constructed on the site of the former Kurri Kurri aluminium smelter, which operated from 1969 until its closure in 2012. The site was repurposed to address the growing need for reliable, on-demand power as Australia’s energy market becomes increasingly dependent on intermittent renewable sources such as wind and solar. The decision to build the plant was influenced by the urgent need for firmed energy capacity to support the transition away from coal and ensure the reliability of the electricity supply during peak demand periods.

The power station features two advanced open-cycle gas turbines (OCGTs) supplied by Mitsubishi Power, capable of initially running on natural gas with provisions to integrate up to 30% hydrogen in the future. Diesel will be used as a backup fuel, ensuring the station can operate even under extreme conditions when gas supplies might be constrained.

The project has faced some controversy, particularly regarding its environmental impact and the cost of government intervention in the energy market. Critics argue that the focus should be on accelerating the development of renewable energy storage solutions, such as batteries and pumped hydro, rather than investing in new gas infrastructure. Despite these concerns, the Australian government has supported the project as a necessary interim solution to maintain energy security during the ongoing transition to a low-carbon economy.

With construction well underway, the Hunter Power Project is expected to begin testing one of its generators by December 2024, with full operational capacity anticipated shortly thereafter. This plant will not only provide vital energy security but also contribute to the local economy by creating jobs and fostering skills development in the Hunter region.

The Hunter Power Project represents a critical component in Australia’s strategy to balance the immediate need for reliable dispatchable power with the long-term goal of reducing carbon emissions. As the country continues to expand its renewable energy capacity, facilities like HPP will ensure that Australians have access to stable and affordable electricity during the transition.