Coal generator tips switch to gas

Posted on 11/02/2010  
One of Australia's biggest electricity generators says it hopes to convert its Yallourn power station in the Latrobe Valley from brown coal to gas in the next 10 to 20 years. TRUenergy's managing director Richard McIndoe says the switch to gas will be one of the most effective ways of reducing CO2 emissions. He says the speed of the change, however, will depend on government policy and compensation. McIndoe says the conversion will cost up to $2.5 billion and cut CO2 emissions by 75%. Power prices will need to rise 20% to make the switch from coal to gas commercially viable. McIndoe says the Yallourn plant has a life of a further 25 years and compensation will be required to keep the company's balance sheet intact and allow it to build new efficient generators.

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