The co-owner of the largest coal-fired power plant in Queensland in Gladstone said that it could close the factory in March 2029-six earlier than expected.
The power plant – one of the least reliable on the national electricity market – is seen as a crucial part of the heavy industry of the region and offers power to Rio Tinto’s own aluminum smelter, as well as aluminum oxide refineries and LNG and cement factories in the region.
Rio Tinto, the co-owner of Gladstone Power Station (GPS), said that it had informed the Australian Energy Market Operator (AEMO) “of the potential retirement” of Gladstone.
The expected closing year of Aemo was 2035.
Rio Tinto said: “No final decision has been made to retire GPS, which has been working since 1976, and there is potential to extend the lifespan of the power plant and allows other factors.
“There is no immediate impact of this notification on GPS activities. Existing power supply contracts, including Boyne Smelters Ltd, will remain in place until their planned due date in March 2029.”
The company said between now and March 2029 that “with stakeholders would come into contact on the energy market and about options for the future use of the site, which will inform the timeline and strategy for retirement of the facility”.
Sign
The Liberal National Government of the State will announce its energy plan this month, but has already said that coal -fired power stations will run longer – a reversal of the plans of the previous Labor government to put an end to the dependence on the coal force by 2035.
The Prime Minister of Queensland, David Crisafulli, said reporters on Wednesday that he “had not seen the reports of the closure”, but “was” optimistic about the future of mining and production in this state, and therefore we need an energy plan that is affordable, reliable and sustainable “.
The treasurer and Energy Minister, David Janetzki, said that the government “actively collaborated with our government companies to prepare the network for the final closure of Gladstone Power Station”.
Analysts Nexa Advisory said this month that Gladstone Power Station had seen on average 4,200 hours of unplanned malfunctions per year since 2020 – making it one of the worst performing plants in Australia.
“The most important industrial economy of Queensland is at risk due to the Gladstone electricity central,” said Stephanie Bashir, Chief Executive of Nexa.
“An industry that generates $ 6 billion in economic output relies on a power plant that is offline for the equivalent of more than half the time.”
Bashir said that the state government had to set up a solid timetable for the closure of Gladstone, while delivering a project to improve the energy set in the region, so that renewable energy sources and energy storage projects could come online.
She said: “This is not about switching off coal tomorrow, it is about being honest about the poor performance of Gladstone and planning a safe, affordable and cleaner energy system.”
Bashir speculated that the announcement of Rio Tinto of a “potential” closure could be a “fishing on subsidy exercise” – an attempt from the company to put pressure on the government for financial support to run the factory.
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Rio Tinto would not comment on that claim.
Dave Copeman, the director of the Queensland Conservation Council, said that Rio Tinto “had made it clear that they cannot keep their Gladstone activities and no more than worldwide competitive on expensive coal power”.
“The prime minister can no longer put his head in the sand,” he said.
“He cannot ignore the failure to replace our aging coal -fired power stations, regional Queensland communities is in danger by not planning the necessary transformation of our energy system and economy.
“It is vital that governments are fair about the need to replace our outdated coal -fired power stations, so that we get the planning well, build sufficiently replacement renewable energy and set up new clean industries for future -proof regional economies.
“We cannot continue to throw billions of taxpayers in the failure and pollution of coal, and cross our fingers and hope it will keep the lights on.”
Gavan Mcfadzean, the program manager of Climate and Energy at the Australian Conservation Foundation, said it was “encouraging to see Rio Tinto transfer his melting assets in Gladstone”.
“Crisafulli must stick to the climate and renewable goals that he has taken in the state elections.
“The market is moving. The government of Queensland cannot stop it.”
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