AGL and Air Liquide partner to reduce carbon emissions

AGL Energy Limited (AGL) has announced that it has partnered with Air Liquide to recover carbon dioxide (CO₂) at its Torrens Island power station site in Adelaide.

A state-of-the-art CO₂ recovery plant will be built and operated by Air Liquide at the AGL Torrens site to capture and purify up to 50,000 tonnes of CO₂ emissions from the power station’s exhaust per year. This is equivalent to removing approximately 16,000 vehicles from the road every year.(1)

Following recovery from the AGL Torrens site, the CO₂ will be used in the merchant CO₂ market in South Australia, which is currently supplied predominantly from Victoria. The CO₂ is typically used in applications such as carbonation of beverages, carbon dioxide snow for the wine industry, waste water treatment instead of using acids, and in public swimming pools.

The Torrens CO₂ recovery plant will be the only plant in South Australia to capture CO2 from existing emissions and will be the first plant to capture CO₂ from a power station for the CO₂ market in Australia.

AGL Managing Director & Chief Executive Officer, Andy Vesey, said the plant would deliver an environmental benefit and provide local industry with a much needed resource.

"Innovative processes such as the Air Liquide CO₂ recovery plant will be critical in helping reduce emissions from the electricity generation sector.

"AGL is pleased to partner with Air Liquide in channelling CO₂ from our Torrens site for productive use," Mr Vesey said.

Air Liquide Australia Managing Director Michele Gritti said: "This new agreement represents a great opportunity to reduce the carbon footprint for AGL, using CO₂ for local customers rather than releasing it into the atmosphere. As Australia’s leading CO₂ supplier, Air Liquide is pleased to develop a solution thatcontributes to preserve the environment which not only supplies the food industry segment but also reduces the distance travelled by delivery trucks to supply local customers. Air Liquide is investing actively in South Australia for the benefit of its local customer, in order to ensure high quality local production and better product availability."

Construction of the CO₂ plant will commence shortly and is expected to be operational by the second half of 2016.

A post combustion capture pilot plant has been operating at AGL’s Loy Yang power station in Victoria since 2008, capturing up to 500 tonnes of CO2 per annum. A second plant will be constructed at the site by the end of 2015 which will capture 200 tonnes of CO2 per annum. These plants are part of a carbon capture storage research project with the CSIRO.

About AGL

AGL is one of Australia's leading integrated energy companies and is the largest ASX listed owner, operator and developer of renewable energy generation in the country. Drawing on over 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is taking action toward creating a sustainable energy future for investors, communities and customers.