Greenhouse Gas Reduction Deed

The Victorian Government has signed an agreement with the owners of the Hazelwood power station in the Latrobe Valley to cap its greenhouse emissions. The Greenhouse Gas Reduction Deed will ensure a secure and affordable electricity supply for Victorians while reducing greenhouse gas emissions compared to business- as-usual.

The Deed is the first of its kind in Australia. International Power Hazelwood (IPRH) has agreed that the power station will be subject to a cap on greenhouse emissions of 445 million tonnes, achieving a greenhouse saving of 34 million tonnes.

The Victorian Government negotiated the agreement based on an independent planning panel recommendation that the Hazelwood West Field project should go ahead after an Environmental Effects Statement was undertaken.

Under the agreement with the Government, Hazelwood will:

• have its greenhouse gas emissions capped at 445 Mt, a reduction of 34 Mt on the business-as-usual output;
• use its best endeavours to facilitate the large-scale demonstration of new low-emission brown coal technologies;
• have incentives to invest in wind power and other renewable energy projects by providing emissions offsets, where International Power is the lead developer;
• surrender 168 Mt of coal to the State which is currently within its existing mining licence boundary; and
• have set milestones and reporting requirements on its greenhouse emissions.

• Victorian Government's Greenhouse Strategy (external link)
• Department of Planning and Community Development (external link)
• International Power (external link)