The Times Australia
The Times World News

.
The Times Real Estate

.

Labor's plan to green the Kurri Kurri gas power plant makes no sense

  • Written by Bruce Mountain, Director, Victoria Energy Policy Centre, Victoria University
Labor's plan to green the Kurri Kurri gas power plant makes no sense

Is it possible to have your cake and eat it too? Federal Labor is certainly giving it a go by supporting government plans for a fossil gas/diesel peaking plant in the Hunter Valley currently under construction – as long as the plant switches to green hydrogen by 2030.

This is disappointing for three reasons.

One, we don’t actually need the Kurri Kurri power station. It will be a government-built white elephant.

Two, retrofitting it to burn hydrogen would be so expensive as to be unrealistic.

And three, burning hydrogen for power is about the least useful thing you can do with it.

The gas/diesel plant under construction and Labor’s hydrogen proposal came from the realm of politics. It should have stayed there.

Why did Labor switch its position?

Labor has long been split on the Kurri Kurri power station, which has been touted as a way to augment dispatchable generation. At first, Labor denounced the Morrison government’s plans, with climate change spokesman Chris Bowen describing it[1] as a “cynical attempt to pick a fight on gas and continue the climate wars, or to reward the major Liberal donor who owns the Kurri Kurri site”.

Now they say[2] it will create jobs and help provide reliable and affordable electricity.

Read more: Government-owned firms like Snowy Hydro can do better than building $600 million gas plants[3]

As a nod to climate change action, Labor leader Anthony Albanese and climate spokesman Chris Bowen announced the switch with the caveat that Kurri Kurri will use green hydrogen to power 30% of its production when the plant enters service in 2023 and 100% by 2030. Labor says it is prepared to spend up to another $700 million[4] on the plant.

It has been widely suggested[5] the proposed plant is the government’s way to take advantage of Labor’s internal divide.

When the plant was first proposed for the small town 35 km inland from Newcastle, Energy Security Board chair Kerry Schott questioned its viability[6]. “Nobody is going to build it from the private sector because it doesn’t stack up,” she said.

She’s right. It didn’t stack up then and doesn’t stack up now, regardless of how it’s powered.

coal power station seen from above
The Hunter Valley has long been a site for fossil fuel power stations, such as the Bayswater coal station. Shutterstock

The power plant no one needs

When my colleagues and I took a deep dive[7] into this proposed power station, we found there was no need for it until at least 2030. That’s the best case. But as time goes by it is increasingly unlikely it will ever be needed as much cheaper and more efficient alternatives including batteries come to meet the increasing demand for stored energy.

That’s to say nothing of the fact the initial proposal would only have had enough gas stored to run for six hours and then take a day to recharge. Snowy Hydro has since upped these plans to 10 hours of storage.

And Snowy Hydro’s price tag of $600 million? Fiddlesticks. It will cost vastly more. We estimate well over $1bn when costs of the pipelines, storage and other infrastructure are included, even without hydrogen. As a result, there is no way Kurri Kurri would attract enough income to recover its costs. It’s hardly surprising private investors are steering clear. Why bankroll a dud?

But isn’t it good to make gas plants greener?

You can add up to 10% of hydrogen to conventional gas fired turbines without trouble. And you can use hydrogen as the primary fuel in turbine-based power plants, as South Korea has done[8] using hydrogen produced as a by-product in the process of refining oil.

The problem is the two Kurri Kurri turbines ordered by the government can run on a maximum of 15% hydrogen. Snowy Hydro suggests the turbines could be extended to a maximum 30% hydrogen mix, with changes to the internal equipment and piping. But the gas lateral pipeline/storage system is only being constructed to accommodate a 10% mix, and would need to be completely rebuilt to transmit a higher blend.

In short, converting Kurri Kurri to hydrogen means completely rebuilding the plant and its pipeline and storage infrastructure. These are not minor changes.

gas fired plant
The Kurri Kurri plant as depicted in Snowy Hydro planning documents. Environmental Impact Statement, Snowy Hydro Hunter Power Project

Let’s imagine Labor is elected and proves determined to press ahead with these plans. Where, exactly, will they get the green hydrogen from and how will it be stored to run the plant? At present, the world has no large scale source of climate-safe hydrogen produced from water. While there is a great deal of interest in large scale electrolysis – the process where we split water to get hydrogen and oxygen – there is a long road ahead.

Let’s not waste time on distractions

Is that the end of the issues plaguing this plant? Nope. Even if we get to the point where green hydrogen is plentiful, burning it in a combustion turbine is one of the most wasteful ways to use it.

Read more: International Energy Agency warns against new fossil fuel projects. Guess what Australia did next?[9]

That’s because combustion turbines are very inefficient ways to produce electricity. They waste half the energy they consume in the form of heat vented to the atmosphere. That alone makes the use of hydrogen in turbines uneconomic. In fact, we doubt hydrogen will ever be used in combustion turbines to produce electricity. There is absolutely no need to bother doing so, given much better alternatives already exist. Batteries already dominate the market for new storage in Australia and elsewhere and this will surely continue.

We’d be much better off using green hydrogen to decarbonise more difficult industries, such as the production of fertiliser, in industrial processes and chemical manufacturing, and for long-distance land or sea heavy freight where hydrogen still has a weight advantage over batteries.

There are enormous challenges to be met in the transition towards renewable energy and away from fossil fuels. These kinds of obviously economically and technically infeasible proposals serve only to set us back. We should give these plans short shrift.

Independent engineer Ted Woodley contributed to this article.

References

  1. ^ describing it (www.theguardian.com)
  2. ^ they say (www.smh.com.au)
  3. ^ Government-owned firms like Snowy Hydro can do better than building $600 million gas plants (theconversation.com)
  4. ^ another $700 million (www.theguardian.com)
  5. ^ widely suggested (www.smh.com.au)
  6. ^ questioned its viability (www.theguardian.com)
  7. ^ deep dive (www.vepc.org.au)
  8. ^ has done (www.modernpowersystems.com)
  9. ^ International Energy Agency warns against new fossil fuel projects. Guess what Australia did next? (theconversation.com)

Read more https://theconversation.com/labors-plan-to-green-the-kurri-kurri-gas-power-plant-makes-no-sense-176157

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping