Loy Yang B power station

From Global Energy Monitor

Loy Yang-B power station is a 1,026-megawatt (MW) coal-fired power plant in Victoria, Australia. It is owned by Alinta Energy, a subsidiary of Hong Kong–based Chow Tai Fook Enterprises.


The map below shows the location of the plant, near Traralgon South, Victoria.

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Background on Plant

The power station is located near Traralgon and in 2009 it was estimated to have emitted 9.8 million tonnes of carbon dioxide equivalent (Mt CO2e).[1]

The power station generates approximately 1026 megawatts of electricity which International Power Australia states is "17 per cent of Victoria’s power needs". The power station burns brown coal from the adjacent Loy Yang mine, which is owned and operated by AGL subsidiary Loy Yang Power. The first unit of the power station was commissioned in 1993 and the second in 1996.[2]

(Another report from 2003 lists the units as being two 500 megawatt generating units commissioned with an overall capacity of 1000 megawatts. It was also assessed as having a "sent out thermal efficiency" of approximately 30.8.)[3]


Loy Yang B power station was owned by a consortium of International Power plc (70%) and Mitsui & Co. Ltd (30%).[4] In 2012 International Power was taken over by GDF Suez, which became Engie.

In November 2017, the plant was sold to Alinta Energy, a subsidiary of Hong Kong–based Chow Tai Fook Enterprises.[5][6]

Handout from carbon tax package

The owners of the Loy Yang B power station received $116,904,439.63 of the $1 billion cash payments given out in 2011/12[7] to the operators of the most polluting coal-fired power stations. The cash was paid from the Energy Security Fund which was established as a part of the carbon tax legislation passed in 2011.[8][9]

Dispute with the Victorian State Revenue Office

In its 2009 annual report, International Power reported that the preceding year it had settled a dispute with the Victorian State Revenue Office over stamp duty on the purchase of the Loy Yang B and Valley Power plants. "Although at the time we did not consider any Australian stamp duty would be payable, the Victorian State Revenue Office (VSRO) challenged that position. In 2008 we signed a settlement agreement with the VSRO, under which we agreed to make payments for stamp duty on the transaction spread over 5 years. The £20 million charged as an exceptional item represents the present value of those payments," the company stated.[10]


On September 3, 2007, activists from Real Action on Climate Change chained themselves to the coal conveyor belt from the Loy Yang mine which supplies coal to the brown-coal-fired Loy Yang A Power Station and Loy Yang B Power Station in Traralgon, Australia. Two people , and others hung several large banners from the plant. The action took place several days before an Asia-Pacific Economic Cooperation summit in Sydney, and was intended to draw attention to Prime Minister John Howard's failure to limit Australian carbon emissions. Four people were arrested.[11][12]

Waste disposal

On its website, Loy Yang Power states that adjacent to the power station is a 56 hectare ash pond containing 9.8 million cubic metres of ash. "The ash pond is used to collect the ash and dust removed from the boiler and draft plant of both Loy Yang Power and Loy Yang B. The ash and dust is mixed with water to form a slurry, which is pumped, to the ash pond. The ash and dust then settles from the slurry and the water is recycled back to the power station to be reused in the ash disposal process. Excess saline waste from all Latrobe Valley generators is pumped to the Loy Yang Ash Pond for disposal via an ocean outfall."[13]

Upgrade plans

In late 2018 Alinta Energy flagged that it planned to proceed with a A$170 million upgrade of the plant. It was reported the proposal would increase the plant's generation capacity by 5 per cent.[14]

In its 2019 Environmental Improvement Plan Alinta Energy states that in January 2017 the Victorian Environment Protection Agency granted the company a works approval to upgrade each of the two 500 MW units at the plant. In its plan the company stated "we are scheduled to undertake turbine and generator upgrade projects on Unit 2 in early 2019, followed by Unit 1 in 2020. This work will include two major outages and is forecast to improve Loy Yang B’s emissions intensity (efficiency) by approximately 5% and an increase in electricity by up to 8.6%."[15]

While Alinta has not public released details of its expression of interest, the company's chief executive Jeff Dimery told the Australian Financial Review the company would be seeking the support of Mossion Government's Underwriting New Generation Investments program to fund "marginal improvements" at the Loy Yang B power station. It also reported that Alinta was also seeking funding for "a new 300MW gas power plant in South Australia, gas upgrades in Victoria and Queensland and a pumped hydro project in NSW."[16]

Proposed retirement

In August 2019 Alinta CEO Jeff Dimery stated that the rapidly falling cost of renewables would likely lead Alinta to retire Loy Yang-B in the early 2030s instead of 2047, as originally planned.[17]

As of September 2022, Loy Yang B was the only coal-fired power station in Victoria without a closure date.[18]

Emissions lawsuit

In September 2021 Environment Victoria filed a lawsuit alleging that the Environmental Protection Authority (EPA) had failed to adequately consider greenhouse emissions when it reauthorized three Victoria power stations earlier in the year: Loy Yang A, Loy Yang B, and Yallourn.[19]

In October 2022, Environment Victoria's argument was heard in a three-day trial. The organization was seeking a court order to nullify the EPA's decision not to impose emissions limits through Australia's 2017 climate change legislation. A decision on the matter was expected to be delivered in the coming weeks.[20]

National Pollutant Inventory Data

The Australian's Government's National Pollutant Inventory lists emissions from the Loy Yang B power station for 2008/2009 as being:[21]

Substance Air Total (kg) Air Fugitive (kg) Air Point (kg) Land (kg) Water (kg) Total (kg)
Ammonia (total) 13,000 13,000 13,000
Arsenic & compounds 30 30 30
Beryllium & compounds 17 17 17
Boron & compounds 18,000 18,000 18,000
Cadmium & compounds 25 25 25
Carbon monoxide 630,000 120 630,000 630,000
Chromium (III) compounds 90 90 90
Chromium (VI) compounds 61 61 61
Copper & compounds 62 62 62
Fluoride compounds 4,800 4,800 4,800
Hydrochloric acid 4,600,000 4,600,000 4,600,000
Lead & compounds 81 81 81
Manganese & compounds 2,100 2,100 2,100
Mercury & compounds 16 16 16
Nickel & compounds 340 340 340
Oxides of Nitrogen 11,000,000 540 11,000,000 11,000,000
Particulate Matter 10.0 um 370,000 39 370,000 370,000
Particulate Matter 2.5 um 210,000 210,000 210,000
Polychlorinated dioxins and furans (TEQ) 0.00019 0.00019 0.00019
Polycyclic aromatic hydrocarbons (B[a]Peq) 8.0 8.0 8.0
Sulfur dioxide 23,000,000 35 23,000,000 23,000,000
Sulfuric acid 16,000 16,000 16,000
Total Volatile Organic Compounds 990 5.3 980 990
Zinc and compounds 740 740 740

Plant Details

  • Sponsor: Alinta Energy
  • Parent company: Chow Tai Fook Enterprises 70%, Mitsui 30%
  • Location: Traralgon South, Victoria, Australia
  • Coordinates: -38.2555027, 146.5860184 (exact)
  • Status: Operating
  • Gross capacity: 1,026 MW (Units 1 & 2: 513 MW)
  • Type: Subcritical
  • In service: 1993-96
  • Coal type:
  • Coal source:
  • Source of financing:

Contact details

Loy Yang B Power Station
Locked Bag 2500
Bartons Lane
Victoria 3844
Tel: +61 (0)3 5177 2000

Articles and Resources

Related GEM.wiki articles


  1. The Climate Group, Greenhouse Indicator Series: Australian Electricity Generation Report 2009, The Climate Group, August 2010, page 12. (Pdf)
  2. International Power Australia, "Loy Yang B Power Station", International Power website, accessed August 2010.
  3. J. Nunn, A. Cottrell, A. Urfer, L. Wibberley and P. Scaife, "A Lifecycle Assessment of the Victorian Energy Grid", Cooperative Research Centre for Coal in Sustainable Development, February 2003, page 7. (Pdf).
  4. International Power Australia, "Loy Yang B Power Station", International Power Australia website, accessed August 2010.
  5. "Loy Yang B Coal Power Plant Australia," Engie press release, November 23, 2017
  6. Michael Patrini, "Alinta Energy (CTFE)’s acquisition of the 1,000MW Loy Yang B Power Station in Australia," Globe Legal Chronicle, 1/26/18
  7. Department of Climate Change and Energy Efficiency,"Generation complexes eligible to receive Energy Security Fund cash payments", Department of Climate Change and Energy Efficiency website, July 9, 2012.
  8. Australian Government, "An overview of the Clean Energy Legislative Package", Clean Energy Future website, accessed January 2013.
  9. Energy Security Council, "About the Council", Energy Security Council website, accessed January 2013.
  10. International Power, "Annual Report 2009", International Power, May 2010, page 138.
  11. Climate Protest Shuts Down Power Station, ABC News, September 3, 2007.
  12. Disrupting Loy Yang, Real Action on Climate Change blog, September 3, 2007.
  13. Loy Yang Power, "What we do: Power Generation: Facts", Loy Yang Power website, accessed August 2010.
  14. Angela Macdonald-Smith, "Alinta Energy CEO sees $170m coal power upgrade as a safe bet", Australian Financial Review, September 25, 2018.
  15. Alinta Energy, "Loy Yang B Environment Improvement Plan FY 19", page 13.
  16. Angela Macdonald-Smith, "Coal vies with storage projects for govt power support", January 22, 2019.
  17. Stunning low costs inspire Alinta to ramp up renewables push, flag early coal exit, Renew Economy, Aug. 12, 2019
  18. Victoria's Loy Yang A power station will close as early as 2035. What does that mean for energy generation in the state?, ABC, September 29, 2022
  19. Court challenge launched over pollution from Victoria's coal power stations, ABC, Sep. 22, 2021
  20. Environment Victoria launches Supreme Court challenge of EPA's review of coal-fired power stations in Latrobe Valley, ABC, October 23, 2022
  21. National Pollutant Inventory, "2008/2009 report for IPM OPERATION & MAINTENANCE LOY YANG P/L, Loy Yang B Power Station - Traralgon, VIC", Department of Environment, Water, Heritage and the Arts, March 2010.


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