Skip to main content
Gas generation 2023 graph

Powered by gas

Gas is a fossil fuel used to generate electricity, heat homes and power industry. In the electricity market, it plays a distinct role as a fast, flexible fuel that can be dispatched quickly to meet demand, particularly when renewable generation from wind and solar is low.

Most gas-fired generation in Australia is powered by natural gas or coal seam gas, both extracted from underground geological formations. Once processed, this gas is delivered to power stations via high-pressure pipelines and used to fuel turbines or engines.

Because gas-fired generators can ramp up quickly and operate on demand, they’re typically used as peaking plants – running for short periods during spikes in demand. This makes gas a valuable source of firming capacity as the energy system shifts towards cleaner sources.

In 2024, gas represented 7.6% of Australia’s energy supply - Clean Energy Council.

HOW IT WORKS

Gas-fired power stations generate electricity by burning fuel to create heat, which drives turbines or engines connected to a generator. There are three main types of gas power plants used in Australia:

OCGT - Open Cycle Gas Turbines: OCGTs work like stationary jet engines. Air is compressed, mixed with fuel, then ignited. The expanding gases spin a turbine, which powers a generator to produce electricity. These plants are fast to start and are typically used for short bursts during periods of peak demand. Their thermal efficiency is between 35% and 41%. These turbines will take 10 to 20 minutes from start-up to full load.

CCGT - Combined Cycle Gas Turbines: CCGTs add a second stage to the OCGT process. After the initial turbine is powered, the hot exhaust gases are used to produce steam, which drives a second turbine. This makes CCGTs more efficient, but also slower to start and less flexible in operation. Combined turbines have a thermal efficiency is between 50% and 55%. These turbines will take 20 to 40 minutes from start-up to full load.

RECIPROCATING: These operate like large-scale internal combustion engines, using pistons and cylinders to generate mechanical energy. Reciprocating engines are known for their rapid start-up times and ability to synchronise with the grid within minutes, making them ideal for fast-response firming. Reciprocating turbines have a thermal efficiency is between 45% and 48%. These turbines will take just 5 minutes from start-up to full load.

Source: AEMO Integrated System Plan 2019 Input and Assumptions workbook, AGL, Power Engineering Magazine 1.1.18.

Gas Turbine installation pic

There are various kinds of gas which can be used to generate electricity:

Natural gas - around 95% methane; non renewable

Coal-seam gas - mostly methane, with trace amounts of ethane, nitrogen and carbon dioxide; non-renewable

Landfill gas - typically 40–60% methane with a high carbon dioxide content; renewable

Sewerage gas - primarily methane; renewable

Gas produced from organic waste sources like landfill and wastewater is known as biogas. Because its production-and-use cycle is continuous, biogas is considered a renewable energy source with no net carbon dioxide emissions. When cleaned and upgraded, it becomes biomethane, which can be used in place of natural gas.

Our flagship project

  • Lockyer Open Cycle Gas Energy Project

    The Lockyer Energy Project is designed to deliver reliable “firming” power when wind and solar sources aren’t available. Using open-cycle gas turbine technology, it can be rapidly and efficiently brought online, complementing Stanwell’s broader portfolio of firming projects.

    The project is located near Gatton, 75km west of Brisbane and is located adjacent to a 110 kV electricity network which is an energy distribution hub, and will be developed in two stages.

    The first stage is an open-cycle gas turbine complex with the capacity to generate 114 MW of electricity. There is also the potential for a second stage to be developed on the site, capable of generating up to 8.50 MW of additional firming capacity.

    The project was purchased from Quinbrook Infrastructure Partners in late 2024, and the full acquisition to Stanwell will be completed by 30 June 2025.

    Lockyer project visual aerial 1

GAS INFORMATION HUB

View all Gas Power news

Subscribe to our newsletter

STANWELL SPARK

Stay up to date with quarterly news from Stanwell, delivered straight to your inbox. Learn more about our projects, partnerships and how we're delivering affordable, reliable and secure electricity for Queensland.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.