Reduced demand, and the need to reduce carbon emissions, have forced the closure of half of the 1,400 megawatt capacity of the Tarong Power Station in Queensland.

Two of the coal-fired power stations four generation units are being closed. Dennis Franklin, Managing Director of state-owned Stanwell Corp which operates the power station, said that the decision to close two units came about because of an over-supplied energy market, caused by lower than forecast electricity demand.

Tarong power station is the site of a pilot CSIRO project which aimed to reduce emissions by 1,000 tonnes per year by collecting carbon dioxide from flue gases. A second trial, by MBD Energy, aims to pump collected carbon dioxide into waste water where it synthesises oil-rich algae into edible seaweed products or oils.