Operational Footprint.

Electricity generation

AGL’s portfolio of gas fired power generation includes the Torrens Island Power Station (TIPS) (1,280 MW intermediate generation plant), the Somerton Power Station (150 MW capacity peaking plant) and the Moranbah Power Station (12 MW capacity intermediate plant).

In 2007/08, over 90% of AGL’s greenhouse gas emissions resulted from the operation of our gas fired electricity generation assets. In 2008/09 this decreased to 85% of the total greenhouse gas emissions. This reduction is a result of a decrease in electricity produced at Torrens Island Power Station, which was 3,119 GWh in 2007/08, compared to 2,360 GWh in 2008/09. Greenhouse gas emissions at Torrens Island Power Station are managed as part of the overall Plant Efficiency and Performance Management System which coordinates operational and maintenance opportunities activities.

Emissions from renewable generation assets are, by their nature, small compared to other types of generation. AGL’s renewable generation portfolio includes hydro generation assets in Victoria and New South Wales, and the Wattle Point and Hallett wind farms in South Australia. The commissioning of the Hallett 2 Wind Farm, which commenced in May 2009, resulted in a minor increase in generation from AGL’s wind generation assets.

The lack of available water resulted in lower electricity production from AGL hydro generation assets. Greenhouse gas emissions from these assets are primarily Scope 2 emissions related to the import of electricity for plant start up and auxiliary power requirements. These are a minor part of the AGL Operational Footprint.

The AGL Energy Services division, within Merchant Energy, operates a variety of ‘embedded’ generation facilities including cogeneration, landfill gas and biogas generation, biomass and bagasse generation facilities and the Wilpena Pound Solar/Diesel facility.

During 2007/08, AGL installed flares at the Woy Woy and Kincumber landfills to reduce greenhouse gas emissions from these sites. Electricity generators were installed at the Kincumber and Woy Woy landfill sites in June 2008 and August 2008 respectively, to generate renewable energy from the landfill gas emissions at these sites.

Hydrocarbon Extractions (HC Extractions)

AGL owns the Hydrocarbon Extractions (HC Extractions) facility at Kurnell, New South Wales. HC Extractions produces LPG and naptha from oil refinery waste gas. HC Extraction’s greenhouse gas emissions result from natural gas use, electricity consumption and minor emissions associated with fugitive emissions at the site. Greenhouse gas emissions have not changed significantly relative to 2007/08.

Upstream Gas

During the period, AGL significantly increased its interest in upstream gas assets. AGL acquired interests including the Gloucester Basin, Innamincka Petroleum, Galillee Basin and the Hunter Gas Project. Currently, the upstream gas activities that form part of AGL’s Operational Footprint do not contribute significantly to AGL’s footprint. This is primarily because these projects are in their initial phases. AGL expects greenhouse gas emissions to increase over time as production increases from these projects.

AGL continues to operate the Camden Gas project. Emissions from the Camden Gas Project have not varied significantly from 2007/08.

Retail and Corporate Services

AGL manages a number of office facilities where our employees carry out services related to the provision of gas and electricity to our customers, and provide corporate services to support the broader business. Activities included in this data include electricity use and transport (vehicle and air travel). AGL has offices in Sydney, Melbourne, Adelaide and Brisbane.

Scope 3 emissions

Scope 3 emissions are classified as indirect emissions (other than associated with the purchase of steam/heat or electricity) that occur outside an organisation’s direct boundary. The primary sources of scope 3 emissions from AGL’s activities are our purchase of fuel (mainly natural gas) and electricity use in our offices. In 2008/09, AGL’s scope 3 emissions were 388 kt CO2e, which represents a significant decrease from 695 kt CO2e in 2007/08. This is directly related to a decrease in the amount of fuel used for electricity generation from our gas fired generation assets during the period, and a significant reduction in the published upstream emission factor for gas used at Torrens Island Power Station.

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