An energy infrastructure business and energy investment company will each receive funding for two gas developments worth hundreds of millions of dollars.
The Federal Government has agreed to underwrite APA Group’s $300 million Dandenong Gas Power Project in the eastern Melbourne suburb of Dandenong and Quinbrook Infrastructure Partners’ $100M Lockyer Energy Project in Adare, 43km east of Toowoomba.
APA hopes to build a 220 megawatt (MW) gas generator to provide fast-start, reliable generation that addresses a significant jump in intermittent renewables across the Garden State. Quinbrook, on the other hand, plans to build a 32MW gas generator to provide new capacity that will help meet peak periods in Queensland and New South Wales.
Deal expected in 2020
The initial agreement to underwrite gas generators will require further talks before the deal is finalised in the New Year.
“The government will now enter detailed underwriting and contractual negotiations with the project proponents ahead of their financial investment decisions,” Federal Energy Minister Angus Taylor said in a public statement.
Construction is expected to begin once both projects secure private sector finance. None of the jobs are advertised yet.
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Coal is still on the table
The prime minister separately indicated a new coal-fired power station could be coming for Queensland and NSW.
“There’s a proposal for Collinsville up in North Queensland which we are expecting a report on very, very soon,” Scott Morrison said in a broadcast interview according to the Australian Associated Press. “I’m quite agnostic, just as long as it’s reliable and it’s cheaper.”