We are committed to protecting the environment from preventable risks and harm. We apply a risk-based approach to environmental management, driven and influenced by AGL’s Environment Policy. Our Health, Safety and Environmental Management System (HSEMS) outlines the way in which potential environmental impacts resulting from our activities should be identified, assessed, managed and minimised, as far as is reasonably practicable.

Air emissions

We operate a portfolio of power generation plants, many of which combust fuels that result in the emission of combustion products to the atmosphere. Our gas production and storage assets also produce emissions to air.

Emissions to air from our operations can potentially contribute to regional airshed environmental issues, so we regularly maintain our equipment to keep it running efficiently and in compliance with regulatory requirements. We are committed to continuing to engage transparently with members of the community who may be concerned about air emissions from our operations.

We report air emissions from our operations to the Federal Government’s National Pollutant Inventory (NPI) each year. The NPI is a publicly available database of emissions from Australian industrial facilities. Air emissions are also reported to state government regulators, as required. As part of the Environment Protection Licences issued to Bayswater Power Station, Liddell Power Station, Rosalind Park Gas Plant (Camden Gas Project) and the Newcastle Gas Storage Facility (NGSF), we are also required to publish air monitoring data on our website.

We also publish our main air emissions in our data centre, where data relating to emissions of the following pollutant types can be viewed or downloaded:

• Carbon monoxide (CO)
• Particulates (PM₁₀)
• Particulates (PM_2.5)
• Sulphur dioxide (SO₂)
• Oxides of nitrogen (NOx)
• Volatile organic compounds (VOC)

Greenhouse gas emission data (including information about fugitive methane emissions from coal seam gas projects) can also be viewed in the data centre. Discussion of our greenhouse gas performance data and our approach to decarbonisation is provided in the Transition to low carbon energy section.

Improvements to air emissions management and monitoring

AGL’s thermal power stations

Air emissions monitoring is conducted at our power stations to ensure that we comply with the specific emissions limits set in our environment protection licences, and in state and federal legislation. Furthermore, we monitor and report on air emissions in accordance with the requirements established in those licences.

AGL Macquarie and AGL Loy Yang power stations are fitted with Continuous Emissions Monitoring Systems (CEMS). By capturing real time data, the CEMS allows these operations to track environmental performance at any moment in time, enabling efficient responses where needed.

AGL Macquarie made a voluntary commitment in 2016 to install CEMS monitors for SO₂ and NOx on Units 2, 3 and 4 at the Bayswater Power Station. Subsequently these monitoring points were added to the Bayswater Environment Protection Licence in September 2017. For more information on air emissions from Bayswater and Liddell power stations, visit the AGL Macquarie Environment page on the AGL website.

AGL’s gas operations

Our gas facilities at the Camden Gas Project, Newcastle Gas Storage Facility, Silver Springs and Gloucester Gas Project are operated under environment licences, which set out requirements for air emissions limits and air emissions monitoring. We report these results in accordance with licence requirements.

In addition to monitoring air emissions from point sources (e.g. stack emissions), we also monitor fugitive emissions from these facilities. Fugitive emissions relate to the irregular gas emissions that occur but are not captured or controlled through an emission point.

We conduct Leak Detection and Repair (LDAR) programs on our gas operations equipment and infrastructure as part of operations and maintenance performance monitoring activities, to ensure that we are consistently operating in accordance with good industry practice. The LDAR programs, required under our environment protection licences, are a critical operational control, enabling the operational site to closely monitor the performance and condition of plant and equipment. Visit the AGL website to learn more about our air monitoring programs at the Camden Gas Project and the Newcastle Gas Storage Facility.

During FY18 we conducted leak detection surveys at our processing facilities and related infrastructure at our Silver Springs gas facility located in central Queensland. These surveys were carried out at 104 gas wells, processing facilities at the Wallumbilla LPG plant, and for more than 200 km of pipelines and gathering lines.

In FY16 we announced the decision to close the Gloucester Gas Project. Prior to FY18, all gas wells at the Gloucester Project were fully decommissioned. This included leak detection testing, with no leaks identified. In FY18, there were no further requirements for leak detection testing.

Water

Management of water resources, both quality and quantity, is an important environmental issue in Australia and of direct relevance to our business. Governments and the community expect the energy industry to act responsibly so that water resources are used efficiently, recycled whenever possible, and not detrimentally impacted by its operations.

Water use improvement projects at our thermal power stations

Water for AGL Macquarie’s Bayswater and Liddell power stations is sourced from the Hunter River (via Lake Liddell). To reduce our impact on water from the Hunter River, we use reverse osmosis and brine concentrators to treat and recycle approximately 10,500,000 kL per annum. We also limit the amount of water that needs to be extracted by recycling process water that is used to transfer ash to the ash dams. Through this process, we annually recycle approximately 2,000,000 kL of water onsite that would otherwise be withdrawn from the Hunter River. Water monitoring is conducted at AGL Macquarie in accordance with requirements in our environment protection licences.

In FY18, AGL Macquarie progressed its plan for a project to reuse water in the Bayswater Ash Dam, which will reduce the likelihood of discharge from the emergency spillway. When approved, this project will involve the construction of a pipeline to pump water from the Bayswater Ash Dam to the void of a disused mine (Ravensworth Void 4). Transferring the ash dam water to Ravensworth Void 4 for operational use would save around 600,000 kL of river water from being used.

Furthermore, AGL Macquarie was granted regulatory approval to upgrade the existing Bayswater Water Treatment Plant (WTP). Through this work, AGL Macquarie will improve the WTP capacity and provide for a more efficient process to dispose of salt wastes generated through operation of the power station.

Additional information including water monitoring reports is available on the AGL Macquarie Environment page on the AGL website.

AGL Loy Yang uses groundwater pumped from the aquifers underlying the Loy Yang mine for cooling water, to reduce the amount of water drawn from the Latrobe River. In addition, the AGL Loy Yang Mine fire service system is a closed loop where the run-off water from within the mine is pumped to the Fire Services Reservoir before being returned for use in the mine forming a closed system. This maximises the water usage within the fire system and minimises the requirement for make-up water.

AGL Torrens sources its cooling water from the Port River and manages operations through its environment protection licence. All water monitoring and discharges are conducted in accordance with the Environment Protection (Water Quality) Policy 2015.

Water monitoring at our gas operations sites

We are committed to monitoring and reporting on water management associated with our coal seam gas (CSG) projects. Dedicated groundwater monitoring networks have been established to monitor the water level and water quality characteristics of shallow beneficial aquifers to identify potential changes during CSG production programs.

Camden Gas Project

A hydrogeological summary of groundwater systems in the region of the Camden Gas Project, which focuses on the geology, hydrogeology and groundwater use across the area, is available on our website. The report also outlines the potential (but unlikely) risks to shallow aquifers from the extraction of produced water, and the management and mitigation measures that we have adopted. Monitoring of produced water volumes, water levels and water quality has shown that CSG activities have not impacted shallow aquifers. Regular water monitoring reports are produced for the Camden Gas Project, which are available on our website.

Visit the data centre to view or download information about the produced water volume, quality and disposal methods at the Camden Gas Project.

Gloucester Gas Project

Following our announcement in February 2016 that the Gloucester Gas Project would not proceed to final investment stage, in FY18 we continued the process to relinquish Petroleum Exploration Licence (PEL) 285 to the New South Wales Government.

Prior to FY18, all gas wells had been fully decommissioned. During FY18, we continued water monitoring in accordance with our environment protection licence. Monitoring data is available on our website.

During FY17, we received approval from the New South Wales Environment Protection Authority (EPA) to irrigate the remaining water stored in dams at our Tiedmans property, after monitoring results showed that the water quality was suitable for beneficial reuse for irrigation and livestock. This water is derived from a mix of produced water from historical exploration programs (i.e. before the Waukivory Pilot) which was blended with freshwater from paddock runoff from the irrigation area, and direct rainfall, and treated in preparation for beneficial reuse. This approval has enabled a local landholder to beneficially reuse the water for irrigation and livestock watering purposes. In FY18, we completed the reuse of the remaining stored water before cleaning and handing over water storage infrastructure to a local landholder.

Water management at our hydroelectric assets

We operate hydroelectric power stations in Victoria and New South Wales, with three major schemes located on different rivers in the Kiewa, Dartmouth and Eildon catchments, and seven minor schemes. The schemes divert and harness river water (run-of-river) or draw on water from reservoirs for the purpose of electricity generation to meet intermediate and peak customer demand. The water is channelled through the water turbines, through a series of penstock controls (including gates and sluices), to generate electricity. The channelled water is then directed to a reservoir for reuse or returned to the river as flow.

The hydroelectric schemes supply, on a long-term average, approximately 1,280 MWh per annum, or about 2% of Victoria's electricity demand. Despite 2% representing only a small proportion of total demand, the schemes' capacity to respond to rapid changes in demand and support the electricity system in the event of other generator plant failures, is extremely valuable. Each scheme is located on different river catchments, enabling AGL to maintain operational flexibility in order to maintain its customer commitments at any given time.

Visit our data centre for:

• the amount of water consumed at our energy generation, gas operations and corporate facilities, broken down by facility type and by water source, and
• the amount of managed water passed through our hydroelectric power stations as well as seawater and surface water used for cooling the AGL Torrens and Liddell power stations (respectively) that is returned to the source.

Waste

Our operations produce a variety of waste streams, which are either reused, recycled or disposed to landfill.

At our industrial sites, we seek opportunities to reuse waste and recycle materials such as scrap metal and waste oil. Hazardous wastes are transported to licensed waste management facilities using regulated waste tracking systems. At our Torrens Island Power Station we have constructed an irrigation system, which provides for onsite application of treated wastewater, which reduces the amount of wastewater required to be disposed.

At our corporate sites, we are working together with our building owners to continuously improve waste management and recycling practices. Besides co-mingled recycling items (e.g. paper, cans, plastic bottles), we recycle batteries, printer cartridges and redundant IT equipment. We have implemented organic waste recycling at our Melbourne office, and we are working with our other building owners to implement this initiative across the other corporate sites. In FY18 we trialled an initiative to collect disposable coffee cups to be converted into processed engineered fuel to avoid this waste stream from being sent to landfill.

In addition to continuously improving waste management at our operational and corporate sites, our staff also volunteer in clean-up initiatives within the communities where we operate. Read more about how our AGL people give back to the community in the Community engagement section.

Visit the data centre to view or download data on hazardous and non-hazardous waste disposed and recycled from AGL’s facilities.

Noise

The generation of noise is an unavoidable characteristic of some of our business activities. Many of our projects involve the development of rural land that was previously used for other purposes by third parties. The management of noise is vitally important in such settings, where background noise levels are low and amenity expectations are high.

We conduct our activities in accordance with noise limits applied to our operations, which are defined by the environment protection licences, authorisations and approvals we hold. We also conduct noise monitoring, as per the requirements established in those licences, authorisations and approvals.

In FY18, we conducted noise monitoring at Camden Gas Project (quarterly) and NGSF (annually), and results confirmed that noise emissions recorded at sensitive receiver locations are compliant with the operations' Environment Protection Licence conditions. Noise monitoring conducted in FY18 at AGL's Oaklands Hill Wind Farm also confirmed that the wind farm is operating within the permitted noise levels.

Rehabilitation

To provide certainty to our employees, customers, the communities in which we operate and our broader stakeholders (policy makers and investors), we have set dates by when we plan to close our coal-fired generation assets. We have set out further detail on the principles guiding our approach to closing our large, coal-fired generation assets in our Power station transition and closure section of the report.

FY18 rehabilitation works

In addition to our ongoing legislative and regulatory requirements, we recognise our responsibility to rehabilitate our sites to an appropriate state upon the cessation of activity. Consistent with our longer-term plans for closing and repurposing our power generation and gas assets, in FY18 we progressed rehabilitation as described below.

AGL Loy Yang

The Hazelwood Mine Fire Inquiry Report encouraged further research and trials with regard to coal mine rehabilitation, including investigating the use of power station fly ash waste in rehabilitation, and the impacts on the environment, erosion and revegetation. AGL Loy Yang, in collaboration with Federation and Monash universities, is undertaking a five-year program of research into the potential for using engineered soils for rehabilitation, which includes the utilisation of ash and the appropriate formula for such soils.

AGL Macquarie

AGL Macquarie has undertaken a comprehensive study of rehabilitation options for Liddell and Bayswater power stations, along with associated infrastructure such as water supply and ash depositories. This study has assessed potential re-use of the sites and the infrastructure and forms the basis of forward planning for site rehabilitation. Further detail on plans to repurpose the site of the Liddell Power Station are provided in the Power station transition and closure section.

During FY18, we conducted rehabilitation of a total of 21 hectares of pasture at the Ravensworth Mine Site. We also completed construction of a second composting facility on Void 3 to generate compost for use in rehabilitation of the site and the Liddell Ash Dam. In preparation for the application of organic soil, approximately 9.5 hectares were capped at the Liddell Ash Dam. Other rehabilitation works included the planting of 1,000 saplings as part of the Hunter River Pump Augmentation Project. Over FY18 we continued rehabilitating the disused Ravensworth Mine Void 5 with fly ash from the Bayswater Power Station.

Camden Gas Project

In November 2016, we announced the schedule for Stage One of the rehabilitation of coal seam gas wells in the Camden Gas Project, which entails rehabilitating 41 of the original 144 gas wells. In FY18, we decommissioned a further 10 wells from the Stage One rehabilitation program. Decommissioning and rehabilitation of wells is undertaken with a high level of regulatory oversight by the New South Wales Government’s Department of Planning and Environment and the New South Wales Environment Protection Authority as lead regulator, and conducted in accordance with standards set in the New South Wales Government’s Code of Practice for Coal Seam Gas.

We continue to engage with the local Macarthur community on the full scope of our activities (operations, closure planning, decommissioning and rehabilitation) as we work towards full closure of the project in 2023. More information is provided on our website.

Gloucester Gas Project

Following our announcement in 2016 that AGL would exit from the Gloucester Gas Project in FY18, we completed surface rehabilitation of these well sites and related infrastructure. The well leases are located in an agricultural setting and have therefore been returned to agricultural use. At the end of FY18 we were awaiting final regulatory approval of rehabilitation conducted at these assets. In the meantime, we are continuing our monitoring program as per requirements of licence and regulatory approvals.

Biodiversity and Cultural Heritage

We develop and operate assets on land that, in many cases, has value for reasons of biodiversity and cultural heritage in addition to its commercial value.

Our large assets maintain risk registers that detail site-specific risks and risk management measures related to biodiversity and cultural heritage.

AGL has biodiversity offsets for some of the assets it operates, such as Macarthur Wind Farm, Nyngan Solar Plant and Broken Hill Solar Plant. We monitor these offsets in accordance with the conditions of approval. For more information on the biodiversity offset management and monitoring for the solar assets, visit the Nyngan Solar Plant and Broken Hill Solar Plant websites

For more than 20 years, we have been monitoring macroinvertebrate and fish at the Kiewa Scheme catchment to assess potential impacts of our desilting activities at our hydro assets, which are required for the effective operation of the hydroelectric power stations. Monitoring results continue to show that impacts on fish and macroinvertebrates are negligible.

AGL Biomass Policy

In recognition of the effect that electricity generation can have on biodiversity, we have established a Biomass Policy which states that AGL will not source fuel for power generation from native forest or from plantation forests located in areas cleared of native forest after 1990.

Related information

• Environment Policy
• Biomass Policy