Victorian Premier John Brumby was joined by Victorian Energy and Resources Minister Peter Batchelor at the site 12 kilometres west of Mortlake, in southwestern Victoria, to turn the first sod in mid-March.

Mr Brumby said that the 550 megawatt (MW) power station will be used to meet electricity needs at peak demand times, such as on hot summer days.

Origin Executive General Manager of Major Development Projects Andrew Stock stated that the power station would supply the equivalent of peak power to 250,000 homes. “Mortlake’s open-cycle gas turbine technology will provide cleaner peaking power, producing approximately 50 per cent lower greenhouse gas emissions than existing brown coal-fired generators.”

Origin has an option to further expand the power station, which would take the overall investment to $1 billion. Such an expansion would provide an additional 500 MW of power, increasing the plant’s total capacity to over 1,000 MW.

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“It will help meet Victoria’s future electricity demand as our population continues to grow,” said Mr Brumby commenting on the project. “It reinforces that our state is leading the way in the development of new clean energy sources.”

In addition, a $35 million contract has been awarded to AJ Lucas Group to construct a pipeline that will connect the Mortlake Power Station to the new Otway Gas processing plant near Port Campbell. Once constructed, the 83 km, 500 millimetre diameter gas pipeline will supply the plant with natural gas at a transmission pressure of 15 megapascals. With preliminary work already underway, the pipeline is expected to be completed in May.

“The Mortlake Power Station, alongside Santos’ proposed Shaw River gas-fired plant, wind and potentially geothermal projects, are making the southwest Victoria’s new clean energy hub,” said Mr Batchelor.