Australia’s taxpayer funded gas-fired power plant may have to run on diesel for its first six months.

The federal government has threatened to build the power station if the private sector does not come up with 1000MW of new supply by the time AGL closes its Liddell coal-fired power station in the Hunter Valley in 2023.

Snowy Hydro Corporation has been tasked with building the $610 million project at Kurri Kurri in the Hunter Valley, though it has not yet received federal funding.

Last week, an Environment Impact Statement (EIS) for the project was released, showing that a new gas pipeline to feed the plant may not be ready in time for 2023.

The EIS states that the plant would have to use diesel fuel if it is needed to run in the six months after it comes online. 

The Kurri Kurri power station is intended to run as a ‘peaking’ power generator, stepping in when the needs of electricity consumers are highest.

“Gas fired generation is a proven technology which could be operational at the (Kurri Kurri) site by late 2023,” the EIS states. 

“Total emissions from the [plant] would be low compared to baseload coal and given its fast start capacity, gas fired power generation can be used for firming of renewable energies and as a peaking facility.”

Diesel fumes would add to the Hunter Valley's already elevated levels of particulate pollution.

But the EIS warns there would be implications of not building the Kurri Kurri gas plant too, such as power shortages and interrupted power supply for NSW residents and businesses. 

It says that doing nothing and waiting for the closure of Liddell could see more load-shedding, where peak demand is unable to be met.