The new gas-fired power plant will be built based on reciprocating engine technology and is likely to employ about 200 people for its construction.
It will replace two of the four Torrens A turbines, which will be progressively mothballed by AGL starting from 1 July 2019.
The Australian energy developer said that the four Torrens B turbines will continue to run as normal. The Torrens A and Torrens B turbines are part of the 50-year-old 1.28GW Torrens Island Power Station.
According to AGL CEO Andy Vesey, the Barker Inlet Power Station, which is slated to begin operations in the second half of 2019, will deliver more reliability and security for South Australians.
Vesey said: “The Barker Inlet Power Station units will be able to ramp from zero to full capacity in five minutes, and are 28 percent more efficient than the Torrens A Station units they will replace.
“This will deliver gas savings of the same order, reducing costs and lowering emissions.
“As we move towards the staged mothballing of the first two units of Torrens A, we are delivering new investment in modern, fit-for-purpose generation which will supplement and replace the plant coming to the end of its useful life.”
AGL has given an engineering, procurement, and construction (EPC) contract of over €100m to Finnish technology group Wärtsilä to provide 12 50DF dual-fuel engines for the Barker Inlet gas-fired power plant.
Wärtsilä said that its dual-fuel engines will operate mainly on natural gas and have the option to be switched to liquid fuel when needed.
Wärtsilä Energy Solutions president Javier Cavada said: “The flexibility of the Wärtsilä solution is a key enabler for utilities to manage large amounts of solar and wind energy being introduced into the power system.
“It provides reliability of supply through its fast-starting and rapid response capability, and it is both fuel efficient and environmentally friendly.”
Wärtsilä will deliver the dual-fuel engines towards the end of the year.
Image: Illustration of the Barker Inlet Power Station. Photo: courtesy of Wärtsilä.