Energy Australia Puts Construction of Two Power Stations on Hold as Demand Falls

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Researched by Industrial Info Resources Australia (Perth, Australia)--Energy Australia (Melbourne, Australia) has halted construction plans on Aldoga and Blackstone, two 1,500-megawatt (MW), gas-fired power projects in Queensland. They are not on hold because of permits, but because of market conditions that could make these large capital investments unprofitable.

Energy Australia spokesman Michael Devink cited falling electricity demand as one of a "range of factors" behind the decision, including an extensive review of market conditions.

Energy Australia does not expect to begin work anytime soon on either of the projects.

Blackstone was proposed as a high-efficiency, gas-fired power station within an existing 500-hectare industrial park in Ipswich, close to Swanbank B Power Plant. The Blackstone project received planning approvals from the Ipswich City Council and was in the process of selecting a construction partner before it was placed on hold. If developed, the Blackstone power plant will create 400 construction jobs in the Ipswich region and deliver energy security for all sectors of Queensland households, businesses and industry.

Similarly, Energy Australia proposed building the 1,500-MW Aldoga power plant within a 26,000-hectare state development area in Gladstone, Queensland. The power plant was to be built in stages to match the growing electricity demand in Queensland. The company intended to seek permits to build either a simple-cycle or a combined-cycle power plant at the proposed site, and choose the technology depending on an assessment of demand for power before construction began. Aldoga power project is yet to receive permits and development approvals for construction.

In addition to the two gas-fired projects in Queensland, Energy Australia is also assessing market conditions and the economic viability of a 700-MW, natural gas-fired power project in New South Wales.

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