Tallawarra B Dual Fuel Capable Gas/Hydrogen Power Plant

June 28th, 2023

Tallawarra B Dual Fuel Capable Gas/Hydrogen Power Plant

The Tallawarra B power station, to be located in the Illawarra region of New South Wales, will operate as a dual fuel capable ‘peaking’ plant and be capable of using a blend of natural gas and renewable-based hydrogen in its operations.

Main proponents:



Main end-use classification:

Electricity generation


Under construction – hydrogen consumption can take place from 2025

Estimated cost:


Other involvement:


Production/consumption details:

EnergyAustralia will offer to buy 200 tonnes of renewable-based hydrogen per year from 2025


New South Wales, Australia

Announced funding:

AUD$83 million whole of project – combined funding from the New South Wales Government (up to AUD$78 million) and the Australian Federal Government (AUD$5 million)

Project description

In early May 2021, EnergyAustralia and the New South Wales Government announced that the Tallawarra B power station development would proceed to construction following execution of a funding agreement between the two parties.

Funding support of up to AUD$78 million is to be provided by the New South Wales (NSW) Government and AUD$5 million from the Australian Federal Government in support of financial close of the project and to support the project being hydrogen-ready.

Tallawarra B would operate as a ‘peaking’ power station; essentially, being able to ‘fire up’ quickly when required to stabilize the power grid during demand peaks.

Tallawarra B will be a dual fuel capable peaking plant; capable of using a blend of natural gas and 5 per cent by volume renewable-based hydrogen (through an open-cycle, hydrogen and gas capable turbine).

Under the funding agreement, EnergyAustralia will offer to buy 200,000 kilograms (200 tonnes) of renewable-based hydrogen from 2025 (equivalent to over five per cent of the plant’s fuel use) and will offset direct carbon emissions from the project over its operational life.

EnergyAustralia will also undertake further engineering studies to investigate optionality for increasing the use of renewable-based hydrogen.

The 316-megawatt (MW) Tallawarra B power station is to be constructed adjacent to  EnergyAustralia’s existing Tallawarra A 435 MW gas-fired power plant, located in Yallah on the western shore of Lake Illawarra in NSW (approximately eight miles southwest of the city of Wollongong).

EnergyAustralia has ordered a GE 9F.05 open cycle, hydrogen and gas capable turbine to power the Tallawarra B station. Clough, in consortium with its partner GE, was awarded the Engineering, Procurement and Construction (EPC) scope for Tallawarra B.

Tallawarra B is planned to be operational in the Australian summer of 2023-24.


Updated: June 2023