AGL breaking ground on Kwinana dual-fuel gas fired project to support WA’s renewables transition

AGL has taken the first step towards construction of its Kwinana Gas Power Generation 2 (K2) Project, which will provide greater security and reliability to WA’s electricity grid. 

In March 2026, AGL reached Final Investment Decision on the K2 project, a 220 megawatt (MW) open-cycle, dual-fuel gas turbine power station to be co-located with AGL’s existing Kwinana Swift Power Station, known as K1.

K2 will add up to four new open-cycle gas turbines (OCGTs) and combined with the existing K1 asset, will offer approximately 340 MW of fast-start dispatchable power.  

The total estimated project cost is $490 million, which includes the four new gas turbines AGL agreed to purchase from Siemens Energy AB last year.

AGL Managing Director and CEO, Damien Nicks, was joined by Western Australian Premier, Roger Cook, and the state’s Energy Minister, Amber-Jade Sanderson, for an official sod turning ceremony at the site this morning.  

“The Kwinana Gas Power Generation 2 (K2) Project represents a major step forward, not only for AGL, but for the resilience, reliability and security of the South West Interconnected System (SWIS), and for Western Australia’s renewable energy transition,” Mr Nicks said. 

“K2 significantly bolsters AGL’s WA portfolio, and on the back of our recently signed 15-year Power Purchase Agreement (PPA) with Waddi Wind Farm near Dandaragan for 105 MW, provides opportunity to continue to scale our Perth Energy business and further diversify beyond the east coast energy market.”

Comments attributed to Premier Roger Cook:

“Affordable gas has played a critical role in keeping WA’s economy the strongest in the nation,” Premier Cook said.

“This project will support an affordable supply of gas to all Western Australians by firming renewables, allowing more households to install rooftop solar and supporting investment in job-creating renewable energy projects throughout WA.”

Comments to be attributed to Energy and Decarbonisation Minister Amber-Jade Sanderson: 

“Gas provides system security as we increase renewables on the grid, it is the enabler of the energy transition as we exit state owned coal by 2030,” Minister Sanderson said.

“This project will ensure power remains reliable as we undertake this transformation of the grid.”

The project is expected to create up to 200 construction jobs with a target to commence operations by the end of 2027. 

AGL announced in October 2025 an agreement to purchase four new gas turbines for the K2 project from Siemens Energy AB for $185 million, and the Australian Energy Market Operator (AEMO) assigned 176MW of Peak Certified Reserve Capacity to the project commencing from 1 October 2027.