Kaisun Holdings, China Energy Engineering and Australian Cavcorp have signed a Memorandum of Understanding for the conversion of the Hunter Economic Zone in Kurri Kurri (New South Wales, Australia) into a 2,000 MW coal-fired power complex. The proposed projects - one 2,000 MW coal-fired plant or two 1,000 MW coal-fired power plants - would replace AGL's ageing 2 GW Liddell coal-fired power plant that is due to be closed in 2022. The estimated cost of the project is AUD4-5bn (US$3-3.5bn) and it could receive government subsidies of up to AUD2bn (US$1.4bn).
The 2,000 MW Liddell facility is located near Muswellbrook at Lake Liddell, in New South Wales, it belongs to the largest Australian coal-fired assets and generates about 8 TWh/year of electricity, enough to meet the power needs of nearly one million homes. It was acquired by AGL from Macquarie Generation (MacGen) for AUD1.5bn (US$1.4bn) in September 2014.
In May 2018, the Australian power group AGL Energy rejected a AUD250m (US$190m) offer from the electricity company Alinta Energy for Liddell and confirmed its plans to close the power plant in December 2022 in order to replace it with gas peakers, renewables, battery storage and demand response, in line with the New South Wales Generation Plan.
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