Norton Rose Fulbright LLP

08/21/2023 | Press release | Distributed by Public on 08/20/2023 20:28

We advise Victorian Government on Loy Yang A Power Station closure

Global law firm Norton Rose Fulbright has advised the Victorian Government on the orderly closure in June 2035 of the Loy Yang A Power Station in the Latrobe Valley, a key Australian decommissioning project amidst the global energy transition.

The firm advised the government in relation to negotiations of a Structured Transition Agreement (STA) with AGL Energy Ltd, under which AGL and the State agreed to an orderly closure of the 2.2GW Loy Yang A Power Station on 30 June 2035.

The future decommissioning of the coal-fired thermal power station, situated 165 kilometres southeast of Melbourne, is described by AGL as "one of the most significant decarbonisation initiatives in Australia".

From the State's perspective, the STA ensures the reliable and secure supply of energy in Victoria by safeguarding reliable ongoing operation of the power station until 2035, while giving certainty to AGL's public statements in relation to a 2035 closure date. The STA also provides for significant financial support from AGL for the transition of the power plant workforce.

The Norton Rose Fulbright team advised on all matters relating to the STA, including contract design, energy market competition and regulatory issues, workforce obligations, and mine rehabilitation.

Norton Rose Fulbright construction and infrastructure partner Stephen Natoli commented:

"The finalisation of this STA marks an important milestone on the Victorian Government and Australian nation's path towards a clean energy future as part of the global energy transition. We are pleased to have been able to bring together a diverse team of advisors to assist the State in its successful negotiations with AGL Energy."

The core Norton Rose Fulbright team was led by partners Stephen Natoli and Martin Irwin and also comprised partner Elisa de Wit; senior associate Tarrant Sewell; associates Edward McCombe and Deepak Pillai and graduate Hannah Duke. The team was supported by partners Claire Forster, Peter Cash and Jeremy Wickens; special counsel Jacqueline Plant; senior associate Sasha Baker; and associates Sebastian Withers and Joana Becquet-Zardi.