Rio Tinto’s Gladstone coal-fired power station could be retired early

The Gladstone Power Station could retire six years earlier than expected.

The station, which is Queensland’s largest and oldest coal-fired power station, was scheduled to be retired in 2035, but could now close in 2029.

Workers at the station were notified this morning.

Rio Tinto said in a statement no final decision had been made and there was potential to extend the power station’s life.

It said there was no immediate impact on operations.

Existing power supply contracts, including to Boyne Smelters Ltd, will remain in place until their scheduled expiry in March 2029. 

The power station has six units fed from the Rolleston Coal Mine and is operated by NRG Gladstone Operating Services, with Rio Tinto the majority stakeholder. 

Speaking in Cairns on Wednesday morning, Premier David Crisafulli said he was unaware of the impending announcement.

David Crisafulli says the state needs a reliable energy plan. (ABC News)

“I’ll make the observation that we are genuinely optimistic about the future of mining and manufacturing in this state, which is why we need to get an energy plan which is affordable, reliable and sustainable,” he said.

“If we do that, we can make sure we underpin manufacturing for years to come.”

Announcement draws mixed reactions

The Queensland Conservation Council (QCC) said the potential early retirement was evidence that heavy industry and the private sector were getting on with the transition to cheaper renewable energy.

“Rio Tinto is Queensland’s biggest energy user and they’ve made it clear they can’t keep their Gladstone operations and smelter globally competitive relying on expensive coal power,” QCC director Dave Copeman said.

Rio Tinto has committed to transforming its Boyne Island smelter to renewable energy. (Supplied: Boyne Smelters)

“We are calling on the Crisafulli government to stop playing politics and be up-front with the community by planning for the timely closure of the state’s other ageing coal power stations.

“We can’t keep throwing billions of taxpayer dollars at failing and polluting coal, and cross our fingers and hope it will keep the lights on.”   

Australian Conservation Foundation climate and energy program manager Gavan McFadzean welcomed the proposed closure date. 

“It is encouraging to see Rio Tinto transitioning its smelting assets in Gladstone,” he said. 

Qld budget renewable energy reaction

Queensland’s renewable energy plans have become a little clearer, but advocates say they still cannot see how the state will meet its goals of reaching net zero by 2050.

Federal Coalition Member for Flynn Colin Boyce criticised Rio Tinto’s announcement, but said he was not surprised.

“The Gladstone Power Station … supplies approximately 80 per cent of its power production to the alumina sector, also the port of Gladstone and the general heavy industry in Gladstone, so hypothetically, if that were to happen in 2029, that would be devastating for the industry,” he said.

“It [also] highlights the fact that the whole energy policy the [federal] government is pursuing, at the moment of 82 per cent renewable energy by 2030 and indeed 100 per cent renewable energy by 2050, you cannot run the fourth-largest coal terminal in the world at Gladstone and the two refineries and alumina smelter on wind turbines and solar panels — it’s just simply not feasible.”

The Gladstone Power Station is the largest and oldest coal fired power station in Queensland. (ABC News: Christoper Gillette)

In a statement, Gladstone Region Mayor Matt Burnett said he wanted to see the power station operate beyond 2029. 

“Gladstone Power Station has powered Queensland industry and supported thousands of local families for nearly five decades,” he said.

He said he would work with power station operators and the state and federal government to ensure the station remained operational.

Speaking in Cairns on Wednesday morning, Premier David Crisafulli said he had not seen the reports of Rio Tinto’s impending announcement.