Page 73 - AGL Sustainability Report 2011

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Climate
change
Sustainability Performance Report 2011 71
Sustainable generation sources
Research, development and deployment
Technology in the energy supply sector is developing
quickly. Changes to fuel sources, location of generation,
consumption patterns, and the availability of data are
all changing.
Approach
With a focus on deployment of technologies that are approaching
commercialisation, this year AGL has been successful in partnering
directly with technology proponents and other members of industry
to participate in important renewable energy programs supported
by the Federal Government. AGL typically does not directly
participate in research and development; however, initiatives by
investment partners (such as Loy Yang Power and Project Better
Place) are outlined in the report.
Renewable energy
In May 2010, AGL was shortlisted as a finalist in the Commonwealth
Solar Flagships Program, part of the Australian Government’s
$5.1 billion Clean Energy Initiative. The independent Solar Flagships
Council selected eight of 52 applications for funding, including AGL’s,
to progress to the second stage of the process. AGL’s proposal
consisted of up to five solar PV projects with a nominal capacity of
between 30 MW and 50 MW each in up to five different states/
territories. Unfortunately, AGL’s application was unsuccessful with
two other applications from the final eight being selected for
funding. While disappointing, AGL remains committed to examining
future opportunities for the development of large-scale solar
PV generation.
Investment partner initiatives
Loy Yang Power
Loy Yang Power owns and operates the Loy Yang A Power Station in
Victoria’s LaTrobe Valley. AGL is a minority investor in this brown coal
fired power station, with a 32.5% equity stake in the Greater Energy
Alliance Corporation (GEAC) which owns Loy Yang Power. Although
the most efficient of Australia’s brown coal fired generators, Loy
Yang A Power Station is one of the largest point source emitters
of greenhouse gas emissions in Australia.
Developments with respect to greenhouse gas emissions at
Loy Yang this year include:
>> Loy Yang Power continues to participate in a Post Combustion
Carbon Capture Project. The project has been funded jointly by
Loy Yang Power, other industry participants and the Victorian
and Australian governments. The study is the frst of its kind in
Australia and will act as a catalyst for the future development
of a commercially viable post-combustion carbon capture plant
based on Mitsubishi Heavy Industries’ latest technologies. A pre-
feasibility study will commence this year with government funding
support via ‘carbon net’ of $2 million.
>> Loy Yang Power has an ongoing commercial relationship with
MBD Energy Limited concerning the bio-sequestration of carbon
dioxide. The MBD carbon dioxide bio-sequestration process is
unique because captured fue gasses, including carbon dioxide,
are recycled with waste water to produce valuable commodities
and clean water. The MBD technology is ideally suited to coal
fred power stations because it utilises adjoining buffer land and
consumes fue emissions, waste water and sunlight to produce oil
suitable for energy and plastics production (and other derivatives)
as well as nutritious stock feed, clean water and oxygen.
ActewAGL
In June 2011, ActewAGL signed a landmark agreement with Better
Place in relation to the provision of renewable electricity for the
deployment of electric vehicles. The $60 million supply agreement
will result in new renewable energy being provided over 10 years
to electric vehicles purchased and operated within the Australian
Capital Territory. ActewAGL has been working with Better Place for
some time on the deployment of electric vehicles within Canberra.
Electric vehicles have the capacity to significantly reduce Australian
transportation greenhouse gas emissions and to provide alternatives
to peak load management for electricity network operators.