AGL and its contractor Clough have broken ground on the Kwinana Gas Power Generation 2 (K2) Project, designed to provide greater security and reliability to Western Australia’s electricity grid.
The K2 project is a 220MW open-cycle, dual-fuel gas turbine power station to be co-located with AGL’s existing Kwinana Swift Power Station, known as K1.
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K2 will add up to four new open-cycle gas turbines (OCGTs) and combined with the existing K1 asset, will offer approximately 340MW of fast-start dispatchable power.
The total estimated project cost is $490 million, which includes the four new gas turbines AGL agreed to purchase from Siemens Energy AB last year.
“The Kwinana Gas Power Generation 2 (K2) Project represents a major step forward, not only for AGL, but for the resilience, reliability and security of the South West Interconnected System (SWIS), and for Western Australia’s renewable energy transition,” AGL managing director and CEO Damien Nicks said.
“K2 significantly bolsters AGL’s WA portfolio, and on the back of our recently signed 15-year Power Purchase Agreement (PPA) with Waddi Wind Farm near Dandaragan for 105MW, provides opportunity to continue to scale our Perth Energy business and further diversify beyond the east coast energy market.”
Western Australian Energy and Decarbonisation Minister Amber-Jade Sanderson said, “Gas provides system security as we increase renewables on the grid, it is the enabler of the energy transition as we exit state owned coal by 2030.
“This project will ensure power remains reliable as we undertake this transformation of the grid.”
The project is expected to commence operations by the end of 2027.
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AGL announced in October 2025 an agreement to purchase four new gas turbines for the K2 project from Siemens Energy AB for $185 million, and the Australian Energy Market Operator (AEMO) assigned 176MW of Peak Certified Reserve Capacity to the project commencing from 1 October 2027.
