ASX/Media Release
16 March 2009
Origin’s Mortlake Power Station set to energise Victoria
Origin’s Executive General Manager, Energy Markets Mr Frank Calabria said, “The new $640 million power station, on its completion, will add significant capacity to Victoria’s energy resource.”
“Mortlake is a great example of Origin’s strategy of being a fuel integrated generator and retailer. This strategy allows us to better satisfy more of our peak retail demand from our own generation, particularly at this time when the market for peak demand is tightening,” Mr Calabria said.
The Premier of Victoria, John Brumby and Energy and Resources Minister Peter Batchelor joined Origin to turn the first sod on construction of the new power station today.
Mr Calabria added “This multi-million dollar construction project will play a significant role in assisting the Victorian Government’s objective of maintaining a secure, efficient and affordable supply of electricity while reducing the intensity of greenhouse gas emissions from the energy sector. We regard the project’s social and economic benefits as being of State significance.
“It also contributes to the diversity of generation and gas supply, providing a better-balanced and more secure energy system. All of these benefits are further enhanced by the fact that Mortlake will utilise a local energy resource through its sourcing of Otway Basin gas,” Mr Calabria said.
Commenting on the project, Origin’s Executive General Manager, Major Development Projects, Mr Andrew Stock said that Mortlake Power Station would prove a good strategic fit for Victoria’s energy needs.
“Many factors about our modern lifestyle, including the growing demand for household air conditioning – especially during hot summers, have driven a requirement for additional peaking generation capacity,” Mr Stock said.
"Mortlake will have the capacity to supply the equivalent of peak power to 250,000 homes, which will provide a substantial boost.
“Mortlake’s open cycle gas turbine technology will provide cleaner peaking power producing approximately 50 per cent lower greenhouse gas emissions than existing brown coal-fired generators.
“With the power station situated close to major loads in western Victoria and beyond, it also reduces the need to transmit power from the Latrobe Valley, which will reduce system losses and further reduce emissions.
“Importantly, Origin has designed the facility to allow conversion of the plant to base load in the future, which would lead to a further significant reduction in emissions intensity,” he said.
“From an employment perspective, during the construction phase more than 350 jobs will be created, with a number of people being engaged from the local community. There will also be ongoing permanent jobs associated with the power station when it is commissioned.
“The growing workforce and project requirements will in turn generate additional services and jobs for local business through the supply of goods and services,” Mr Stock added.
Bilfinger Berger Services (Aust) Pty Ltd was selected as the major contractor for the construction of the Mortlake Power Station. The contract includes the supply, design, procurement and installation for the civil, structural, mechanical and electrical works. The modern gas turbines powering the station will be supplied by Siemens.
The power station will be supplied with natural gas via a pipeline to be constructed from Port Campbell to the site delivering gas. The pipeline will deliver gas from Origin’s joint venture gas fields in the Otway Basin to Mortlake. The pipeline contract was awarded to AJ Lucas Group Ltd.
Noting that preliminary work on the Port Campbell to Mortlake pipeline is already underway, Mr Stock said the final pipeline corridor had been chosen as the most direct and appropriate route between the source of the gas and the power station.
“The pipeline corridor takes into account many factors including safety and security, direct route access and minimising the impact of construction on the environment,” Mr Stock said.
“Throughout the project Origin and the affiliated contractors have adhered rigorously to the environmental impact issues with work on the environmental aspects starting back in 2005,” Mr Stock added.
As part of the environmental assessment process, Origin prepared a comprehensive Environment Effects Statement (EES) that involved a range of environmental, cultural heritage, social and economic studies culminating in an approved Environment Management Plan.
In parallel with the formal EES process, a broad community consultation program was undertaken to inform the public and project stakeholders about the project, its progress and most importantly to seek community feedback.
rigin has also been working with the Traditional Owners of the land, seeking their views to ensure that the development sits comfortably with the heritage and values of their community. A cultural heritage survey was followed by an archaeological assessment to ensure that the project was being set up in an appropriate framework which led to a documented Cultural Heritage Plan.
Origin encourages public participation and comment through development, construction and operation of the project.
“We would particularly like to thank the power station's neighbours, local shire councils, government authorities and indigenous groups – the Kirrae Whurrong, Kuuyung Maar and the Framlingham Aboriginal Trust - who have assisted us over the years to develop a power station concept that satisfies the planning, environmental and cultural requirements,” Mr Stock said.
Mortlake Power Station – Quick Facts
The Mortlake Power Station will help to meet the growing and future demand for electricity in Australia.
- $640 million, 550 megawatt (MW) gas fired peaking power station
- The Power Station is located 12km west of Mortlake in western Victoria
- It will be constructed on approximately 20 hectares of land with an extensive buffer zone around it
- It will be built adjacent to the existing Moorabool to Heywood 500 kV high voltage transmission line
- The plant will be supplied with ‘local’ natural gas via a 83 km dedicated underground natural gas transmission pipeline from the Otway Gas processing plant near Port Campbell
- Being situated close to major loads in western Victoria, it reduces the need to transmit power from the Latrobe Valley, which will reduce system losses
- The development minimises environmental impact and provides an alternative to coal-fired generation in the National Electricity Market
- It is estimated that the station will produce significantly lower greenhouse gas emissions than existing brown coal-fired generators
- It will have the capacity to supply the equivalent of peak power to 250,000 houses
- It is an example of Origin’s strategy of integrating across fuel supply, power generation and retail markets
- It will assist the Victorian Government’s objective of maintaining a secure, efficient and affordable supply of electricity
- It will create more than 350 jobs during construction with a number of ongoing permanent jobs
For further information please contact:
Media
Lina Melero
General Manager Corporate Communications
Ph: 02 8345 5217
Mobile: 0427 017 798
Investors
Angus Guthrie
Manager Investor Relations
Ph: 02 8345 5558
Mobile: 0417 864 255
Origin Energy is Australasia’s leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. Listed in the ASX top 20 the company has approximately 4,000 employees, is a leading producer of gas in eastern Australia, is the largest owner and developer of gas-fired electricity generation in Australia and is a leading wholesaler and retailer of energy. The company services more than 3.5 million electricity, natural gas and LPG customers across Australia, New Zealand and the Pacific. Origin’s strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth in the ever changing energy industry. Through Australia Pacific LNG, its 50:50 incorporated joint venture with ConocoPhillips, Origin is developing Australia’s largest CSG to LNG project based on Australia’s largest CSG reserves base. In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country. Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies. For more information go to www.originenergy.com.au
