(EJA) has revealed that energy corporation AGL has only set aside a small amount to rehabilitate its three coal-fired power stations as well as its coal seam gas operations.
EJA鈥檚 findingswere released on March 31 as听AGL posted a $2.3 billion loss for the first half of financial year 2020鈥21,听primarily from its coal-fired power stations.
It has听subsequently announced plans to separate its coal, oil and gas assets from its renewable energy assets in what critics have described as a cynical attempt to听 of its听polluting power stations.
Greenpeace criticised AGL for only pretending to move to renewables and that the announcement of two businesses 鈥 one to听鈥渉ouse AGL鈥檚 token renewable energy assets鈥澨齛nd a separate company to hold its coal assets including some of the nation鈥檚 top climate polluters was a fake branding exercise.
It said on April 8 that AGL鈥檚听strategic plan includes relying on climate-wrecking coal-burning power stations to generate the bulk of its power for decades to come 鈥 in the case of Loy Yang A, until 2048.
An influx of renewable energy into the electricity market has pushed down wholesale prices, especially during the day, eroding the profits of coal-fired power stations.
AGL owns the Bayswater and Liddell power stations in the Hunter Valley in NSW, and the Loy Yang A power station in the Latrobe Valley in Victoria.
It bought the NSW power stations from the NSW government in 2014, and Loy Yang A and its associated brown coal mine from its previous owners in 2012. Loy Yang A was privatised, along with the rest of Victoria鈥檚 power stations, by the Liberal Jeff Kennett government in the 1990s.
AGL听has听also operated听the Camden coal seam gas project in Sydney鈥檚 south west听since 2001.听Following community campaigns听demanding it close, because of leaky gas wells and proximity to the rapidly-growing urban settlements, it announced in 2016 it would bring forward its plan to decommission the wells to 2023.
The energy giant announced in 2015 that the 50-year-old Liddell coal-fired power station would be closed by late 2022, and later revised that to April 2023.
Toxic legacy
AGL鈥檚 ever-less profitable coal-fired power stations and its CSG plant carry a vast toxic legacy.
Vast听amounts of听ash from听each of the听power station furnaces is dumped in huge open air pits.听听shows听that the ash contains toxic heavy metals听such as听arsenic, lead, mercury, selenium, thallium and other toxic pollutants which can become airborne as dust blows off the dry dams.听It can also听leach into groundwater.
Liddell uses a large freshwater Lake 鈥斕齃ake Liddell 鈥斕齛s its cooling system, an inefficient technique that was popular when the plant was designed in the 1960s.
The Liddell ash dam and nearby Bayswater power station听ash dam both drain into Lake Liddell.听The听听analysis听of ash dam pollution听at NSW coal-fired power stations听has shown听that听Lake Liddell听is听contaminated听with pollutants including aluminium, iron, boron, selenium and very high levels of copper.
In 2016,听AGL closed听the听lake, previously used as a public recreation area,听after the听听was discovered听in the water. This lake, as well as the enormous ash dam nearby will need to be cleaned up as part of听the power station听decommissioning.
Meanwhile, the Loy Yang A power station has its own large brown coal mine听from where听its fuel听supply听originates.听The pit is shared with its twin power station, Loy Yang B,听which is听owned by Hong Kong-based Chow Tai Fook Enterprises.
This giant pit 鈥 200 metres deep and three kilometres long 鈥 will need to be covered over when the twin Loy Yang power stations are retired.
Leaving the coal seams exposed to air creates a fire hazard.听The nearby听听in February 2014 and burned for 45 days, cloaking the region in thick toxic smoke.
The cheapest option to cover in the pit is to flood it with water. However, there is no indication that AGL will be given permission to use such large quantities of water, which would then require topping up, even during droughts, to compensate for evaporation losses.
As for the Camden Gas Project,听anti-gas听organisers have spoken out against听waste water from the gas wells being dumped听into Sydney鈥檚 sewerage system, and听gas leaking from wells听has听been corroborated by residents who noticed听听around well sites during flooding.
All the wells need to be decommissioned and capped and toxic residues and contaminated soils cleaned up.
Fund inadequate
EJA said that in its 2020 annual report AGL had only allocated $45 million for current and $299 million for non-current environmental restoration across Liddell, Bayswater, Loy Yang A and Camden CSG projects.
EJA lawyer Bronya Lipski said this amount falls well short of what is needed and is particularly concerned about AGL shirking the clean-up at Loy Yang A.
鈥淭here were already huge concerns about whether AGL would adequately rehabilitate its Loy Yang power station site ... Costs allocated for rehabilitation appear to be grossly inadequate and with this demerger there is a risk they will fall through the cracks altogether.鈥
Lipski said AGL, which did give a specific estimate of rehabilitation costs for each site, said the allocation of just $344 million 鈥渋s less than half the $743 million Engie has stated it needs to decommission and rehabilitate the Hazelwood power station and adjacent mine鈥.
Without听adequate听rehabilitation funds,听communities in and around the coal-fired power stations and听the听CSG wells will have their health compromised and,听eventually,听be forced to foot the clean-up听bill听themselves.