Big Australian Coal Plant Could Close Six Years Early — Update

By Rhiannon Hoyle

One of Australia's biggest coal-fired power stations could close later this decade, six years earlier than previously scheduled, co-owner Rio Tinto said Wednesday.

The Gladstone Power Station, in Australia's coal-rich Queensland state, will potentially retire when existing supply and operational arrangements expire in March 2029, said Rio Tinto, the world's second-biggest miner by market value. The company owns a 42% stake in the plant, which is operated by Houston-based NRG Energy.

Gladstone is Queensland's largest single power station, accounting for more than 7% of Australia's coal-fired power capacity.

Rio Tinto has the biggest stake in a joint venture that owns the plant. A unit of NRG owns nearly 38%, while other stakeholders include a company jointly owned by Japan's Marubeni Corp. and Sumitomo Corp.

Rio Tinto said no final decision has been made to close the power station, which opened in 1976. Under Australian law, companies must provide notice of the closure of electricity generators three and a half years in advance, the company said.

"Between now and March 2029, the JV participants will engage with stakeholders on the energy market and on options for the future use of the site, which will inform the timeline and strategy for retirement of the facility," Rio Tinto said in a statement. The notice period can be extended at any time, it said.

"There is potential to extend the life of the power station should market and other factors allow," the company said.

The notification of Gladstone's possible closure follows an Australian government target to reduce greenhouse gas emissions by 62% to 70% below 2005 levels by 2035, announced last month.

Existing power-supply contracts, including to Rio Tinto's Boyne Smelters business, Australia's second-largest aluminum smelter, will remain in place until their scheduled expiry in March 2029, Rio Tinto said. The company intends to power that smelter with renewable energy from later this decade.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

October 01, 2025 01:14 ET (05:14 GMT)