Torrens Island Energy Park (TIPS Expansion) 

Energy for South Australia
The Community wants to know their energy supply will be secure and capable of meeting their demands. This is the framework in which AGL has developed its plan for the Torrens Island Energy Park.

The Energy Park can provide security of supply consistent with the South Australian Government’s future energy planning needs.

AGL’s Energy Park is estimated to require a capital expenditure in excess of $800 million. It will expand and diversify the existing Torrens Island Power Station (TIPS) operations which have operated under AGL ownership since 1 July 2007.
There are two separate major components AGL is proposing as part of the initial Energy Park concept:

• Power station expansion – open cycle gas turbine peaking plant involving up to four gas turbines (total nominal installed capacity of 700MW), with a proposed staged construction responding to market demand; and
• Gas storage facility – comprising of a Liquefied Natural Gas (LNG) production plant, storage tank and re-gasification units that convert LNG to pipeline quality gas.

These two projects have different timelines. The construction of the Energy Park is expected to require a large workforce.

AGL has not limited its thinking to the proposed development and is also considering future developments that could include:

• Geothermal power generation;
• Solar power generation and
• Other potential new power generating assets.

The Power Station Expansion
TIPS is the largest power station in SA, supplying up to 1280MW of generation capacity into the SA electricity network.

AGL is planning to develop up to 700MW of additional peaking generation at Torrens Island involving either four (4) “E” class gas turbines with a nominal capacity of between 120MW and 190MW each or two (2) “F” class gas turbines with a nominal capacity of between 200MW and 300MW each.

The timing of the expansion is subject to market demand and is therefore still to be determined, however based on current market demand is expected within the next 2-3 years.

Gas Storage Facility
The gas storage facility (GSF) provides a safe and effective way to store natural gas which is shipped into Adelaide from Moomba or the Otway basin in Victoria.
The GSF will provide a strategic reserve of natural gas playing a critical security of supply role during periods of peak electricity and/or gas demand or during periods of supply disruptions. These types of facilities are commonly used around the world. A similar facility is located in Dandenong, Victoria providing a strategic gas reserve for Melbourne.

The stored liquefied gas can be re-gasified and used directly by the power station or re-injected into the gas distribution pipelines for supply into the Adelaide and SA gas market.

It can also be transferred by road-tanker for use as an alternative lower carbon intensity fuel for heavy duty transport vehicles or for remote power generation.

Next Steps
The first step is to prepare a Torrens Island Energy Park Plan for approval.
AGL will be seeking approval under Section 49 of the Development Act 1993: Crown Development and Public Infrastructure.

The proposed Torrens Island Energy Park is located outside the local Council Zone. The proposed site is zoned correctly for the proposed use (Public Purpose – Power Station).

The next step is to continue with the assessment of potential impacts from the project so that these are well understood and can be mitigated. AGL will engage further with the South Australian Government to ensure a whole of Government approach is taken to the consideration of this development.

AGL will prepare a comprehensive environmental and social assessment study to support its Section 49 development application which will ultimately be considered by the Development Assessment Commission.

NOTE: Our application was lodged with SA Planning the week of 18th January 2010. There is an opportunity for public comment until 1st March 2010 and all enquiries regarding viewing any documentation should be referred to Development Assessment Commission during normal office hours , Level 5, Roma Mitchell House, 136 North Terrace, Adelaide.

Visit www.agl.com.au/tipsexpansion or
Email TIEP@agl.com.au or
Phone 1300 789 627 for more information.