AusBN - AGL is investing AUS$400 million in a 252MW gas-fired power plant in New South Wales, as part of plans to replace the aging Liddell coal-fired station and transition towards cleaner energy.
In a recent information release, the energy company revealed the site will be built near Newcastle and is targeting completion by 2022.
AGL managing director and chief executive Andy Vesey said: “[AGL is] committed to supporting the orderly transition of Australia's electricity generation capability to modern, clean and reliable energy supply".
The company said it will also assess the potential for a further 500MW of capacity to be added to the gas plant, subject to demand from its commercial and industrial customers.
"Electricity generation is undergoing an increasingly rapid transition to lower cost, clean energy renewable and storage technologies," said Vesey.
"This requires the complementary development of flexible, dispatchable gas-fired technology, as well as policies to support these developments."
Federal Environment Minister Josh Frydenberg welcomed the investment, but said it will not remove the risk of blackouts once the Liddell power station closes.