Environmental groups and the Central Coast Greens are calling on the NSW Government for full transparency about any informal agreements regarding the operation of Vales Point Power Station, following the announcement that private Czech company, Sev.en Global Investments, would buy the Delta Group.
The Greens are concerned that the sale could make it more likely the power plant will operate beyond its scheduled closure date of 2029.
Also, the Nature Conservation Council (NCC) says the sale should trigger the NSW Environment Protection Authority to bring the plant into compliance with Clean Air Regulation.
“Vales Point power station is a major source of nitrogen oxides and has been granted an exemption to the clean air laws for over a decade,” said NCC CEO Jacqui Mumford.
“The new owners should be required to slash the station’s pollution so people can breathe healthier air,” she said.
NSW Greens MP and Central Coast, Hunter and Newcastle spokesperson, Abigail Boyd said the EPA recently gave Vales Point a limited concessional licence “to continue polluting the air with dangerous particulates and CO2”.
“This was despite a concerted campaign by the surrounding community who have grave, documented concerns about the health impacts of this unsafe level of air pollution,” she said.
While the terms of the sale are not yet public, Boyd said documents she obtained revealed that such a sale would have required the consent of the NSW Government.
“The Central Coast Greens are calling on the NSW Government to publicly clarify the split of liabilities between the new owner and the NSW Government in relation to the Vales Point site,” she said.
“At the very least, a clear schedule and conditions must be put on the sale that ensures the clean-up of the coal-ash dams and rehabilitation of the land, based on all international environmental standards.
“Yet again, we see a sale of electricity assets shrouded in secrecy.
“It’s time for the NSW Government to come clean with its plans for the ageing coal-fired power stations in our State and to ensure they have a plan for each and every one of them to be closed down and cleaned up in line with best practice environmental standards.
Boyd said, all else equal, it made little commercial sense to own and operate this plant for only seven years, given a declining supply of local thermal coal of reasonable quality and price.
“State legislation and regulation on coal-fired power are expected to tighten in the foreseeable future, the existing levels of subsidies and other government support are likely to shrink or disappear, and price yields for electricity supply have peaked.
“They are under significant regulatory pressure to decline substantially in the transition to predominant electricity generation from renewables,” Boyd said.
Spokesperson for local environmental group Future Sooner, Gary Blaschke of Lake Munmorah, says residents are “deeply worried the new owners will seek to extend the life of this polluting power plant beyond 2029, prolonging the damage to our health”.
“Future Sooner wants NSW Minister for Energy, Matt Kean, to immediately intervene into the proposed sale of Vales Point power station and deliver an independent transparent review into the sale that includes community consultation and involvement.
“We want the Minister to confirm that 2029 is the closure date for the power station; that Vales Point does not receive another exemption licence; and to ensure that the facility is made to install air pollution filters to bring its emissions in line with European standards,” Blaschke said.
The NSW EPA renewed the air pollution exemption in December 2021, but it has emerged that the new exemption is invalid because Delta submitted its application after the deadline.
The EPA revealed in Budget Estimates this month it was reviewing the situation and would decide what to do regarding the exemption by the end of September.
Concerns about the legality of the renewal of Delta’s licence conditions were first identified by Environmental Justice Australia (EJA), which has been acting for NCC in raising those concerns with the EPA.
“Right now, there are serious concerns that Delta has unlawful licence conditions, which let it pollute the air at dangerously high nitrogen oxides levels,” said EJA solicitor, Jocelyn McGarity.
“Additionally, Delta’s operations are also being scrutinised following two major fish kills in Lake Macquarie.
“If Vales Point power station is allowed to operate beyond 2029, we know it will have continued serious consequences for the health of the community.
“It’s also unknown how the sale will impact the rehabilitation responsibilities for the power station ash dumps.
“Delta has previously acknowledged rehabilitation requirements will depend in part on how much ash recycling occurs.
“Sev.en needs to be clear about its plans for ash recycling and outline its long-term commitment to remediation for the community,” McGarity said.
Sue Murray