In August, over $100 million worth of word-class machinery, including Tallawarra’s massive turbine, generator and emissions stack, was delivered to the site in three late night logistical exercises the size of which had previously not been seen in the region.

Project Background

The $A350 million Tallawarra A power station, located near Wollongong, will use a generation technology not previously employed in New South Wales to produce 400 MW of electricity to power 200,000 homes and businesses across NSW and around Australia.

When complete, the combined cycle Tallawarra power station will become Australia’s most environmentally efficient fossil fuel-fired power station, producing 70 per cent less carbon dioxide emissions than some coal-fired power stations.

The Tallawarra power station is being built on a 16 hectare parcel of land that was previously the site of a 320 MW coal plant.

A combined cycle power plant generates electricity more efficiently by using natural gas and steam to produce energy. First, natural gas is burned to create either hot combustion gases or steam which then pass through a turbine that drives a generator to produce electricity.

Instead of releasing the exhaust gases which can typically carry away up to 60 per cent of the heat produced, combined cycle generators capture the heat from the exhaust gases and reuse it.

The GT26 gas turbine employs a range of advanced technologies and materials, including single crystal blading, to achieve a small footprint with high power density.

To minimise the generation of oxides of nitrogen (NOx) during the combustion process, the Tallawarra power station will use a Dry Low NOx Combustion System to protect regional air quality. A total water cycle management approach has been developed to maintain or improve the amenity of Lake Illawarra. The design and operation of an onsite water management system will ensure that the quality of water entering the lake from the site will be above average for the local catchment area.

The power station is being constructed to meet the increasing energy demands of NSW and will reduce the risk of power shortages. TRUenergy will fund the construction process and has appointed ALSTOM to design, supply and construct the power station, which is due for completion by summer 2008/09. Gas to power the station will be supplied via the Eastern Gas Pipeline and the project will generate around 400 jobs and 25 to 30 permanent positions during its construction.

The power station will initially comprise a 260 MW gas turbine unit and a 160 MW steam turbine unit coupled to a 420 MW electrical generator. While the maximum capacity of the plant will be 420 MW, it will generate an average of 400 MW at most times. It will be capable of providing power within minutes of start-up, making it useful during times of peak electricity demand when extra power must be added for a short period during the day.

Following the launch of principal construction in November 2006, New South Wales’ peak load growth has continued to increase at around 400 MW per annum. As a result of this, and the requirement to support its expanding NSW retail presence, TRUenergy has applied for a permit under the NSW Government’s major projects legislation to add up to three further open-cycle gas turbines to the existing power station project. This 300-400 MW gas-fired peak generation plant will be known as Tallawarra Stage B. If approved, the entire Tallawarra power generation facility could produce enough electricity to power 500,000 homes by the summer of 2009-10.

Tallawarra Stage B will operate to meet the peak demand requirements in NSW (for example hot summer and cold winter days) and as backup for other power station maintenance. Tallawarra Stage B will be critical for NSW to help meet rising energy demand and will create more jobs for the Illawarra, making the region a critical energy producing hub within NSW. Should TRUenergy’s application be successful, it envisages construction on Tallawarra B will start late this year or early next, to ensure construction completion ahead of the market demand.

Planning approval process will include consultation with key agencies as well as the preparation of a comprehensive environmental assessment. As TRUenergy has done in the past, consultation will include regular community liaison meetings, public exhibitions and community newsletters.

TRUenergy has secured gas for the project and has negotiated transport arrangements with Alinta Infrastructure Holdings to supply gas to the power station via the Eastern Gas Pipeline (EGP).

Directional drilling for gas pipeline route

TRUenergy is engaged in consultation with the local Wadi Wadi and Wodi Wodi indigenous communities regarding the location of the gas supply pipeline to the Tallawarra plant.

As part of this process, the company engaged a cultural heritage consultant to conduct a survey of its proposed gas pipeline route. This survey identified two areas likely to contain indigenous artefacts of cultural significance and recommended archaeological excavation before construction could proceed. In consultation with local Aboriginal representatives, TRUenergy instead decided to alter the pipeline construction route to avoid any disturbance of these culturally significant areas. While this decision will increase project expenses, relocating the pipeline will not delay construction and has been welcomed by indigenous representatives taking part in the survey work. The pipeline route is being excavated using directional drilling.

People

TRUenergy Tallawarra is generating employment opportunities for existing residents and those moving into new developments in neighbouring regions. During construction the project will generate up to 450 construction jobs. Once complete, the power station will employ more than 30 local personnel, with additional ongoing services and maintenance personnel contracted from the local region as required.

TRUenergy has recently undergone a major recruiting program to identify and select staff to operate and maintain the plant during its commissioning period and thereafter, when it is in full commercial operation. To ensure that the plant will be staffed by qualified and competent personnel, TRUenergy has also committed to a comprehensive training program for these new employees both at site and overseas.

NSW and privatisation

A recent report released by the National Electricity Market Management Company now estimates the NSW Government will not be required to invest in new generation capacity until 2010/11.

TRUenergy has announced its support of the Owen Inquiry, which investigated the NSW electricity sector and recommended the privatisation of retail and power generation assets.

In particular, TRUenergy noted that swift action is required now to ensure new baseload investment is delivered in a timely way to be operational by 2013/14, and that both coal and gas are viable solutions and the Government does not need to mandate a particular fuel strategy.

TRUenergy has expressed its interest in buying NSW energy retail and generation assets as well as signalling a possible float of its business on the Australian Stock Exchange.

Climate Change

Richard McIndoe, TRUenergy’s Managing Director, acknowledges that TRUenergy, as a large energy generator and retailer, faces a more difficult challenge than most to reduce its greenhouse emissions.

The company recently committed to both short and long term greenhouse gas reduction targets, and aims to reduce its overall emissions by 60 per cent by 2050, should a effective national emissions trading policy be introduced.

The company will tackle its new targets while continuing to work towards its goal of growing its share of the national energy market to 20 per cent.

“This strategy will be a key business tool for ensuring that TRUenergy invests only in commercially viable, environmentally responsible energy assets to power Australia,” Mr McIndoe said.

TRUenergy’s commitment to reduce its emissions will also see the company opt not to build any additional power stations using traditional coal-fired technologies.