Snowy Hydro Limited has appointed CIMIC Group company UGL as Principal Contractor for the development of a power generation plant as part of the Hunter Power Project in New South Wales.
For this project, UGL locks in a revenue of $185 million for over two years.
UGL’s scope of works will include the construction of a 660MW power generation plant consisting of two heavy-duty F-class gas turbine generators and related axillaries that operate using dual fuel sources – including provisions to operate on a hydrogen fuel mix.
“We are pleased to work with Snowy Hydro to play a part developing this hydrogen-capable plant and to support the local community by creating direct and indirect jobs opportunities in the industry,” CIMIC Group Chief Executive Officer Juan Santamaria said.
“UGL is well-places to provide the expertise, skill development and training for the construction, installation and operations of new generation technologies across Australia,” UGL Managing Director Doug Moss said.
The $600 million Hunter Power Project is located in Kurri Kurri and it is being developed to “fill the gap in electricity demand” and ensure that the supply of electricity is secured after the Liddell Power Station at Muswellbrook retires.
In addition, the Federal Government has granted environmental approval for the development of the Hunter Power Project.
According to Snowy Hydro: “The closure of Liddell Power Station will reduce NSW’s electricity supply by around 13% and without replacement dispatchable capacity, this risks prices rising by around 30% over two years. Additionally, over the last 10 years, more than 5,000MW of similar ‘baseload’ energy has been removed from the electricity market through coal plant closures. A further 10,000MW is due to be removed by 2040.
“The open cycle gas turbine proposed for the Hunter Power Project will provide the necessary dispatchable ‘firmed’ energy, ensuring security and stability to support the volatility that arises from intermittent renewables.”
Source: UGL Limited; CIMIC Group; Snowy Hydro; Renew Economy