AGL has secured an option on a 280-hectare site to build a first-stage A$200 million, 300MW peaking plant for 2009.

The power station would be supplied with gas from AGL’s wholesale portfolio, which includes the 50% joint venture with Sydney Gas.

“Subject to market demand and appropriate policy and regulatory signals, the first stage would be followed by additional stages for up to 500MW of combined cycle gas-fired generation,” AGL managing director Greg Martin said.

Martin added that the site, already zoned for power station use, was serviced by existing infrastructure, including the Moomba to Sydney and Eastern Gas natural gas pipelines, high voltage electricity transmission lines, as well as suitable water suppliers.

He said AGL would work closely with the NSW Government, local government authorities and the local community to progress approval processes.

Under the joint venture deal with Sydney Gas, AGL paid $42.25 million to the CBM company.

AGL is now the operator of the Camden production joint venture and Sydney Gas will remain as operator of the two exploration joint ventures, while providing operational services to all the projects.

Sydney Gas chairman Michael Knight said the financial close of the arrangements completed a critical element of the company’s strategy.

In other news, Sydney Gas yesterday released further information about its proposed name change to ‘Wollemi Energy,’ including its new logo.

All that’s now needed to complete the renaming is 75% of the shareholder vote at its November 25 AGM, the company said yesterday. It said the renaming after the ancient Wollemi pine tree was driven by the needs to address public confusion, gain community acceptance and expand into new energy forms.

In information to shareholders via the ASX, the company said it expected the new name would lead to greater acceptance by local communities.

“This is an area we must improve as we move forward and we believe that a name that is perceived as being less parochial will assist this effort,” Sydney Gas said.

“We are an Australian company and our work covers a region far broader than Sydney. It is too easy to opponents of our efforts to malign Sydney Gas as outsiders.”

The company also said the public often confused it as a utility, rather than a producer and wholesaler of gas.

In addition, Sydney Gas said it intended to become a fully-fledged energy company in the future.

“For example, in the future our company may be involved with LNG production and electricity generation,” it said.