AGL Energy (ASX:AGL) has formalised its commitment to Western Australia’s energy grid, announcing a final investment decision for the $490 million Kwinana Gas Power Generation 2 project.
The 220 MW gas-fired facility will feature an open-cycle, dual-fuel turbine situated adjacent to the company’s existing Kwinana site.
Construction is scheduled to commence in mid-2026, with the plant expected to begin operations by the final quarter of 2027.
Backed by a $185 million investment in four turbines and supported by a 176 MW reserve capacity allocation from the Australian Energy Market Operator, the project will be entirely funded via AGL's balance sheet over the next three financial years.
At the time of reporting, AGL Energy's share price was $9.86.