Plans for one of Australia’s biggest new gas plants sail through EPBC queue in just over two weeks

Plans for what stands to be one of the nation’s biggest new gas plants have sailed through the federal environmental approval process, signed off as “not a controlled action” – and therefore not requiring any further scrutiny under the EPBC Act – just over two weeks after joining the queue.

The up to 850 megawatt (MW) Allawah Gas Power Generator is being proposed for development in Queensland’s Banana Shire by CPC Energy, a standalone energy developer spun out of one of Australia’s biggest cattle producers, Consolidated Pastoral Company.

The gas plant is being proposed as part of a “multi‑stage development” combining firming, renewables and transmission infrastructure, and CPC Energy is developing it in consultation with one of Australia’s biggest wind, solar and battery developers, Renewable Energy Partners (REP).

Queensland-based REP would know better than most that getting a major new energy generation project through the EPBC queue in little more than a fortnight is quite an achievement.

At the other end of the spectrum, even small wind farms are currently facing waits of many months for a yes, or no, from the federal environment minister, and if it’s a yes, developers can expect it to come with a long list of strict conditions.

According to some developers, the situation for renewable energy projects has only got worse since federal parliament passed a series of reforms to the EPBC Act last November – reforms that were intended to strengthen environmental protections while delivering more efficient, robust and transparent project assessments.

It is worth noting, however, that the nearby 230 MW Banana Range wind farm, proposed by French giant EDF, was also waved through the EPBC as “not a controlled action” – but that was back in 2019 and took around three months.

For the Allawah Gas Project, environment department officials have determined that the construction, operation and decommissioning of an up to 850 MW gas-fired power station an associated high-voltage switching station around 20 km west of Biloela and 7 km north-east of Banana is not a controlled action.

According to the EPBC documents, the Allawah gas plant is part of the first phase of the broader Allawah Energy Hub Project, which is said to comprise “several integrated components that will be delivered progressively as technical, environmental and commercial inputs are finalised.”

“The purpose of the proposed action is to provide flexible, fast-start dispatchable firming capacity to support electricity system reliability, enable increased integration and utilisation of renewable energy, and assist in the orderly transition away from coal-fired generation,” the referral says.

According to project documents detailing Matters of National Environmental Significance for the project, the total annual greenhouse gas emissions from the huge gas plant will be 0.21 – 0.31 MTe emissions, which a US EPA calculator says is comparable to 45,000-67,000 petrol-fuelled passenger cars driven continuously for an entire year.

But the EPBC Act is not required to factor greenhouse gas emissions into its decision. Under the federal Safeguard Mechanism, the project “constitutes a facility for NGER purposes and all relevant emissions and energy data will be included in company-level reporting,” the documents say.

The project proponents say they are investigating converting the proposed open-cycle gas turbines (OCGT) to a combined cycle gas turbine (CCGT), which could reduce emission intensity by about 21.5%. “Status: under investigation; feasibility assessment to be completed prior to first scheduled major overhaul.”

“The project will deliver rapid‑response, firming generation to support Queensland’s transitioning energy system and is strategically located within Banana Shire, in proximity togas pipelines and the proposed Mt Benn Substation, which provides a practical and efficient connection point to the Central Queensland transmission network,” the documents say.

“Once operational, the facility will strengthen regional reliability by supplying fast‑start generation during periods of peak demand, low renewable output, or grid contingency events, helping to stabilise the network as renewable energy in the system continues to increase.

“In particular, the Project is well positioned to support system reliability in the context of the planned retirement of coal-fired generation in the region (including Callide and Gladstone Power Stations) and increasing penetration of variable renewable energy including the nearby Banana Range and Theodore Wind Farms.

CPC Energy says subsequent EPBC Act referrals will be prepared for the gas pipeline and transmission line infrastructure to supply the gas plant and export electricity to the broader network.

“These components will be subject to separate approvals once routes and delivery arrangements are confirmed, and will be progressed by the relevant proponents, including a suitably accredited Transmission Network Service Provider (TNSP) for the transmission line,” the papers say.

Adam Bond, the head of green energy at CPC Energy, says the company is still reviewing options and the potential of the site for future renewable additions.

The 100 per cent Australian-owned Renewable Energy Partners (REP) recently unveiled plans for the Bogunda Energy Hub, which proposes to install up to 850 MW of wind, 500 MW of solar and a 500 MW, four-hour battery in Queensland’s North West Minerals Province.

Other notable projects in its portfolio include the huge 1,000 MW Lake Dalrymple wind farm, proposed for around 60 km west of Collinsville, also in Queensland, and the 800 MW Chahpingah wind farm proposed for Queensland’s South Burnett Region, around 40 km west of Kingaroy.

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