UGL awarded $185M contract for new Snowy Hydro power plant

UGL awarded $185M utilities contract for NSW’s Hunter Power Project — Image courtesy of Snowy Hydro.

CIMIC Group’s UGL has been named as the Principal Contractor by Snowy Hydro for the construction of a 660MW power generation plant at the Hunter Power Project in Kurri Kurri, New South Wales.

The power generation plant will consist of two heavy-duty F-class gas turbine generators and the related auxiliaries which operate using dual fuel sources, including provision to operate on a hydrogen fuel mix.

Open cycle gas turbines (OCGTs) will operate on natural gas and will be hydrogen-ready, with diesel also available on-site as back-up for the extreme and rare cases.

The OCGTs will be capable of running initially on up to 10 per cent hydrogen and with some minor additional investment they will be capable of up to 30 per cent.

The proposed Hunter Power Project at Kurri Kurri aims to fill the gap in electricity demand and ensure security of supply following the retirement of the Liddell Power Station in Muswellbrook, New South Wales.

The proposed Hunter Power Project will supplement Snowy Hydro’s generation portfolio with dispatchable capacity when the needs of electricity consumers are highest.

CIMIC Group Chief Executive Officer Juan Santamaria said the project would help to promote the use of hydrogen fuel mixes.

“Hydrogen-ready gas turbines have an important role in reducing carbon emissions from traditional power generation,” Santamaria said.

The OCGTs will operate on natural gas and will be hydrogen-ready. Diesel is available on-site as back-up for the extreme and rare cases where the NSW power grid needs it to keep the lights on. Over the power station’s life, diesel usage is negligible.

This means the OCGTs will be capable of running initially on up to 10 per cent hydrogen and with some minor additional investment they will be capable of up to 30 per cent, subject to fuel logistics.

The contract will generate revenue to UGL of $185 million over two years. The contract will commence this month.