Engie announces closure of Hazelwood coal-fired power plant
Léna Corot on 03/11/2016
The Hazelwood coal-fired power plant, located east of Melbourne, Australia, is considered one of the most polluting in the world by environmental associations. Engie confirms this Thursday the closure of this plant and the adjacent mine.
The Hazelwood coal-fired power station, considered one of the most polluting in the world by environmental associations, will close. Engie announces this Thursday the effective closure of this plant located near Melbourne, Australia, and the adjacent mine by the end of March 2017.
The Hazelwood plant, in operation since the 60s, produces 5,4% of Australia's electricity. It currently employs 750 people, including 450 Engie employees and 300 subcontractors. Engie says that after production ceases, up to 250 people will continue to work on the site in preparation for dismantling and rehabilitation of the mine. Isabelle Kocher, Managing Director of Engie, explains: "We are committed to supporting our employees and to working as of now on the rehabilitation of the site, in close cooperation with all of our stakeholders".
For some time, the Hazelwood plant has been facing difficult market conditions, explains Engie in a press release: electricity prices are falling and the state of Victoria, where the power plant is located, is experiencing excess production capacity.
Engie focuses on low carbon projects
Above all, this closure is part of Engie's strategy of gradually removing its coal assets from its portfolio. Engie, which took over the plant in 2010 when purchasing International Power, has already announced that it will consider shutting it down as part of this plan. The group aims to focus only on low carbon projects for the production of electricity, renewables and natural gas.
In 2016, Engie already closed or sold coal assets covering more than 5GW. The group said, in a press release, thinking about the sale of two of its power generation assets in Australia: the Loy Yang B coal power station and the Kwinana gas power station.
It remains to know the cost of this dismantling. Les Echos, without specifying the source, said at the end of October that the closure of this plant would cost 1 billion euros.
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