The NSW Government has funded Australia's first dual-fuel-capable power plant to the tune of AU$83 million (US$64 million). The Tallawarra B project will initially run on natural gas, but will be gradually upgraded to burn green hydrogen over coming decades.

This will be a 300-plus megawatt "peaker" plant, sitting dormant much of the time, then firing up quickly to stabilize the power grid during demand peaks. It'll be in operation by 2023-24, providing enough energy at maximum power to run about 150,000 homes, and it's part of a move to replace grid power that'll be lost when the Liddell coal-fired power station is closed down, which is slated for 2022.

The expansion to the existing Tallawarra power station will start out burning purely fossil fuel, in the form of natural gas. But EnergyAustralia, which will own the plant, has committed to offsetting all emissions from the project across its operational life, as well as to "offer to buy" 200,000 kg (440925 lb) of green hydrogen per year from 2025, which will be blended in with the natural gas at a 5 percent proportion by volume to begin with.

"What’s particularly exciting," says EnergyAustralia Managing Director Catherine Tanna, "is that further engineering studies will see if the amount of green hydrogen can increase, which will further support the Port Kembla Hydrogen Hub."