AGL Energy Limited (AGL) and APA Group (APA) have today completed limited-recourse project financing of the 242 MW Diamantina Power Station and 60 MW back-up generation capacity at Mt Isa.

AGL and APA are developing the Diamantina Power Station through a 50:50 jointly owned vehicle, Diamantina Power Station Pty Limited.

The total capital expenditure, including the back-up generation, is expected to be approximately $570 million (before financing costs). AGL's equity contribution is expected to be about $100 million and is being funded from existing cash reserves.

The Diamantina Power Station is expected to become fully operational in the first half of calendar 2014.

About AGL

AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.