Australia’s largest carbon emitter proposes big expansion to WA gas power plant

Australian utility AGL Energy is proposing an up to 250 megawatt expansion to its existing gas-fired power plant in Kwinana, near Perth, that according to its application will emit 196,000 tonnes of CO2 annually, for roughly 30 years.

On Friday, Western Australia’s Environmental Protection Authority (EPA) commenced a seven day public consultation on AGL’s plans for its “K2” plant, which would add up to four new Open Cycle Gas Turbines (OCGT) to the Kwinana Swift Power Station.

If approved, AGL says the project will connect to Western Australia’s main grid, the South West Interconnected System (SWIS), in 2029 and provide capacity during periods of peak and high shoulder load demands. 

The up to 250MW of new capacity would join the four existing dual-fuel 30MW gas turbines at the site, taking the plant’s total capacity after expansion to 370 MW.

The new turbines would be “multi-fuel capable,” meaning they would have the ability to operate on natural gas, diesel, distillate, ethane, liquefied natural gas (LNG) petroleum gas (LPG), and/or hydrogen.

AGL Energy in February outlined plans to develop another 1.4 gigawatts (GW) of grid scale battery storage projects over the coming year, in the race to transform its electricity generation portfolio from its current mix of roughly 80 per cent coal to a majority of firmed renewables.

In an investor presentation delivered after the release of its half-year results for the 2025 financial year, the gentailer said it was targeting final investment decisions for four new big batteries totalling 900 MW in New South Wales and one 500 MW battery in Queensland. Most appear to be around two hours of storage, although this could change.

These plans have not yet extended to the west, however, with a focus instead on bolstering AGL’s gas assets in that state to help firm large-scale wind and solar.

In the project referral to the WA EPA, AGL says greenhouse gas emissions are “the only key environmental factor …or the proposed K2 Project and the only environmental factor that is considered likely to have significant cumulative impacts on the environment.

“The K2 Project is estimated to generate 195,659 t CO2e Scope 1 emissions, 530 t CO2e Scope 2 emissions and 22,937 t CO2e Scope 3 emissions on average annually,” the referral says.

“It is acknowledged that this Proposal is important in allowing the State to transition away from existing coal-fired power generation towards a renewable energy future, and as such allows for an overall reduction in cumulative GHG emissions over time.”

Finding equipment for the gas plant upgrade, meanwhile, could prove difficult.

During a recent episode of Renew Economy’s weekly Energy Insiders podcast, co-founder and Managing Partner at Quinbrook Infrastructure Partners, David Scaysbrook, revealed that “you can’t buy a gas turbine for the next four to five years.”

“They’re all sold out. People don’t appreciate the gas turbine industry de-tooled significantly over the last four or five years,” explained Scaysbrook.

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