As represented by our Environmental Principles, we are committed to monitoring and managing the environmental impacts from all our activities.

In simple terms we look at the direct impact our business has on the environment in two main areas: the renewable and non-renewable resources that are inputs to our business; and the products, wastes and emissions (including greenhouse gas emissions) that are outputs from our business.  AGL aims to minimise our impact on the environment from both inputs and outputs, while maintaining sustainable growth for our business.

In 2007/08, AGL continued to improve the systems in place to collect and analyse the specific environmental data required to determine AGL’s “Environmental Footprint”.  2007/08 was the first full year of footprint data for AGL Energy Ltd and we continue to see dynamic change in our business.  During 2007/08 we entered into further growth and development in the areas of wind generation, pipeline development and coal seam gas operations. 

Our environmental footprint and the processes and systems we employ to manage the impacts our business has on the environment both now and planning for the future are increasingly important.  In this regard over the coming year we will review our Environmental Principles and our approach to biodiversity and water management.

During 2008/09 we will commence the reporting of our environmental footprint and performance to the AGL Board on a six monthly basis via the Safety, Sustainability and Corporate Responsibility Committee.  This will facilitate better performance tracking and help drive further improvements in both our systems and our performance.

This section outlines our environmental impacts and performance during 2007/08 for the following facilities which we operate:

• Hydrocarbon Extractions (HCE), New South Wales
• Somerton gas fired power station, Victoria
• Torrens Island gas fired power station, South Australia
• AGL Hydro, Victoria and New South Wales
• Camden Gas Project, New South Wales
• Energy Services generation facilities
• Construction projects
• AGL offices

This section also includes information on Environmental Incidents which have occurred.

The greenhouse gas emissions associated with these facilities are reported in the Greenhouse Footprint section of this report.

Hydrocarbon Extractions, New South Wales

Hydrocarbon Extractions (HCE), located at Kurnell in Sydney, takes refinery waste fuel gas from the adjacent Caltex refinery and extracts products such as LPG and Naphtha.

Water consumption and emissions to air are the key environmental impacts from the facility, along with energy usage and greenhouse gas emissions, which are included in the Greenhouse section of this report.

Water

In 2007/08 water used as part of our cooling system at HCE totalled 28.79 ML compared to 24.80 ML in 2006/07.  Water consumption during 2006/07 was lower (as evidenced by the historical trending) due to an extended plant shutdown when a four year scheduled maintenece project was undertaken. 

Wastewater from the facility is spray irrigated to a grassed area of the site under Licence from the NSW Environment Protection Authority (EPA).

Air Emissions

Air emissions presented below for HCE are from the annual EPA return for the facility as required by licence conditions.  NOx and particulates emissions have increased slightly, but SO2 and total VOCs have remained static.  The facility had longer operating hours in 2007/08 compared to 2006/07 (as discussed above), which accounts for the increased NOx and particulate emissions. 

Environmental Regulation

HCE is licensed under the NSW Protection of the Environment Operations Act 1997²⁰.  During 2007/08, HCE exceeded its load based licensing limits for benzene, NOx, SO2, hydrogen Sulphide, BOD and suspended solids.  AGL applied to correct the load based licensing limits, and new load limits were received from NSW EPA in June 2008, which will allow the site to be compliant with its license conditions.  The licence variation requires AGL to submit a study on reducing the NOx level from the turbine exhaust in the early part of 2008/09.

Under the Energy and Utilities Administration Act 1987, HCE submitted its yearly Energy Savings Action Plan to the NSW Department of Water and Energy covering the 2007 calendar year.  This report details the energy usage in 2007 and documents an energy management action plan which is on target in 2008.  One of the key actions in this plan is the trialing of smart energy metering across the plant, which will be installed during 2008/09.

Somerton Gas Fired Power Station, Victoria.

Air Emissions

Somerton air emissions as reported to the NPI for NOx and CO have decreased this year (2007/08), while SO2 and VOC have decreased marginally.  This is on account of the reduced operating hours of the station, resulting in a reduced burning of natural gas in the turbines that are responsible for the reported NPI emissions at the site.

Environmental Regulation

Somerton Power Station is licensed under the Victorian Environment Protection Act 1970. During 2006/07 Somerton Power Station received a temporary waiver on the operating cap condition of its EPA Licence²¹.  In 2007/08, AGL applied to EPA Victoria for a further amendment to the licence.  The EPA Victoria has removed the operating hours limit in the Licence.  The removal of the annual operating hours was issued by the EPA to ensure that the power station was capable of supporting security of supply requirements. AGL's submission for removal of the operating limit was supported by analysis that demonstrated the performance of the gas fired Somerton Power Station would have a low environmental impact if operated for extended periods of time and that the emissions of the power station were well within safe standards.

During 2007/2008 Somerton Power Station was compliant with environmental licence conditions

During late 2007, Somerton Power Station submitted a Water Management Action Plan (WaterMAP) review to Yarra Valley Water, as required under the Water Act.  The assessment process requires companies to implement measures where payback is achieved over three years or less.  AGL Energy will track the water use saving at the plant over the course of the WaterMAP assessment period.

Somerton Power Station falls under the Environment Protection (Environment and Resource Efficiency Plans) Regulations 2007.  These regulations require large consumers of energy (>100TJ per year) and water (>120ML per year) to register with Victorian EPA by 31 March 2008, and prepare Environment and Resource Efficiency Plans (EREP) including actions to reduce energy, water and waste with a payback period of three years or less.  Progress must be reported on an annual basis.  The facility has been registered and a project plan will be developed early 2008/09.

Torrens Island Power Station (TIPS)

Torrens Island Power Station is located 18 km from the Adelaide CBD, South Australia.  The power station consists of two plants: Sections A and B. Section A has four 120 MW units commissioned between 1967 and 1971, and is used to meet peak generation requirements.  Section B has four 200 MW units commissioned between 1975 and 1980, and has a load-following duty in the national electricity market. The principal fuel used is natural gas supplied via the SEAGas pipeline from Victoria and by the MAPS pipeline from Moomba in the Cooper Basin. Fuel oil, stored on site, is used as a back up. The station is the largest power station in South Australia and the largest natural gas fired power station in Australia.  AGL acquired the Torrens Island Power Station in July 2007, and as such, 2007/08 is the first year of environmental reporting as part of the AGL Energy portfolio. 

Water Use

In 2007/08, Torrens Island used approximately 309ML²² of water. About 89% is produced from bore water, the rest is town water purchased from South Australia Water.  The bore water is used in the generation process while the town water is used for domestic purposes.

The bore water undergoes two treatment processes to make it suitable for use as boiler feedwater. The first is Reverse Osmosis (RO), adopted in about 2001, and the second is demineralisation.

RO removes 98% of dissolved solid impurities prior to demineralisation.  As a result, there are fewer chemical regenerations of the demineralisation plant.  The benefits of RO include reduced raw water costs, reduced demineralisation plant regeneration chemical use and costs by 99%, reduced demineralisation plant effluent by 99% and reduced chemical storage by 46%.

Torrens Island power station uses sea water for cooling.  The environmental licence requires the monitoring of cooling water thermal discharges to the marine environment and verification by an independent auditor every two years. External verification of the monitoring program and report to the EPA in 2006 confirmed compliance with licence requirements.  The next verification will occur in the last quarter of 2008.  However, monitoring since 06/07 has indicated continued compliance.

Air Emissions

The primary fuel used in for both sections of the power station is natural gas, with a back up fuel oil firing capability that can be engaged when gas is constrained. Air emissions from the station can therefore vary from year to year and depend on factors that include the amount of generation and each fuel used.

Comparison of air emissions figures demonstrate the increase of emissions as generation increases.  However, in 2007/08 there was a reduction in firing on fuel oil.  Fuel oil has a 3% maximum sulphur content specification, and so this reduction in fuel oil use accounts for the lower sulphur dioxide emissions.

Environmental Regulation and Management

Torrens Island Power Station operates in accordance with EPA Licence 12849 and EPA Dark Smoke exemption 14179.  During the reporting period, the Dark Smoke Exemption was renewed for a period of five years to 31 March 2013. Gas is normally fired in the power station boilers. The exemption applies to certain circumstances that have the potential to cause dark smoke from the power station stacks.  These circumstances include where there is a changeover from the normal gas fuel to back-up oil firing and particularly for testing the reliability of the back up oil firing system.

An annual environmental management program is conducted under the station’s certified AS/NZS ISO 14001 Environmental Management System.  During 2007/08, 67% of program actions were completed.

Two specific examples of environmental management and improvement during 2007 include:

• A review and assessment of the storage of anhydrous ammonia was undertaken at the plant.  Anhydrous ammonia is a dangerous and hazardous substance.  As recommended in the review, the anhydrous ammonia storage facility underwent extensive engineering changes to minimise the quantities stored on the Island at any time.  The improvements to the storage facility and subsequent processes and management regime have significantly reduced the safety and environmental risks at the site.  This includes reducing the quantity of anhydrous ammonia stored to 1 tonne compared with 16 tonnes and the length of time that any anhydrous ammonia is held on site is reduced from 365 to 30 days per year.
• In view of the location and nature of operations at TIPS, the power station has an on site emergency marine spill response team.  During 2007/08, the 9 man team carried out a comprehensive oil spill response training exercise spanning two days.  The exercise included implementing protocols for boat handling and the deployment of an oil containment boom.

Hydro electric Generation Facilities

AGL Hydro power generation facilities are spread across New South Wales and Victoria. The hydro-electricity assets include flexible catchment controlled cascade power stations, “run of river” power stations and irrigation driven facilities as follows:

Mountain Streams Scheme

The scheme, located in Victorian Alpine region has a non-consumptive bulk water entitlement from the Victorian Department of Sustainability and Environment that entitles AGL to utilise inflows to the catchment for generation purposes. 

Kiewa Scheme

The Kiewa scheme has a non-consumptive bulk water entitlement from the Victorian Department of Sustainability and Environment that entitles AGL to harvest the water in the Kiewa catchment area for generation purposes via a cascade scheme of power stations. The scheme operates adjacent to and surrounded by the Victorian Alpine National Park.

Dartmouth

The station is operated under a water agreement with Goulburn Murray Water (GMW) that entitles AGL to generate electricity from all releases of water from the storage.  The storage is owned by the Murray Darling Basin Commission (MDBC) and operated on their behalf by GMW

Eildon and Cairn Curran

These stations are operated under water agreement with Goulburn Murray Water (GMW) that entitles AGL to generate electricity from all releases of water from the storages.  The storages are owned and operated by GMW for the supply of irrigation water to downstream users.

Pindari, Copeton, Burrendong and Glenbawn

These stations operate under a water agreement with NSW State Water that entitles AGL to generate electricity from all releases of water from the storages.

Yarrawonga

Yarrawonga operates under a water agreement with Goulburn Murray Water that entitles AGL to generate electricity from all releases of water from the storage.

Key environmental management processes for the hydro catchments include management of water quality through the annual dam desilting program, easement management and bushfire management.  These three aspects are linked and have environmental impact implications. 

Serious bushfires occurring in the Alpine catchments have environmental impacts including soil erosion, ash and silt loading in water courses, and other impacts on water quality due to reduced retention times and infiltration of water falling in the catchments.  Additionally, bushfire in the catchment directly impacts on the AGL Hydro facilities through increasing operational constraints, resourcing and damage to facilities, and with increased silt in dams, comes reduced operational capacity.  Easement management occurs for safety of supply, and to reduce the risk of bushfire.

Annual Desilting Program

An annual dam desilting program is undertaken at the Kiewa and Mountain Streams schemes.  This program comprises critical maintenance activities designed to retain the operating capacity and flexibility of these schemes.

Desilting has occurred since the inception of the hydroelectric scheme, and the current desilting processes have been in place for more than 10 years.  A rigorous process of assessment of impacts has been adopted in order to retain the integrity of the river ecosystems and meet with maintenance requirements.

A desilting working group meets annually, to review process, key dates and annual biota monitoring data and reach agreement on the annual program of works. The working group members include local Catchment Authorities, Freshwater Ecology, Arthur Rylah Institute for Environmental Research, Department of Sustainability and Environment, Parks Victoria, EPA, and the Department of Primary Industries. Desilting works are conducted in accordance with a Memorandum of Understanding between the key stakeholders.

Desilting works are conducted during the higher flow winter months to reduce impact on the ecology of the river systems.  Silt is removed by a combination of direct flushing into the river system or removal by excavation.  Parameters for silt and nutrient load in the downstream waters have been agreed and set for the desilting works and during works are monitored at 15 minutes to hourly intervals, depending on location.  The desilting process has been undertaken annually for more than 10 years and in that time has been shown to have no significant impacts on the ecology of the river system, based on long term studies of the macro-invertebrate studies undertaken by the Freshwater Ecology, Arthur Rylah Institute for Environmental Research at DSE.

Easement management

AGL Hydro manages a network of allocated easements across the operational area in the Victorian alpine region.  Vegetation management in these easements is undertaken for operational and safety purposes and easement management is part of our bushfire mitigation program which is a requirement of the Electrical Safety Act, under the bushfire and vegetation regulations.  AGL informs Parks Victoria and Department of Sustainability and Environment of vegetation management activities and where we need to increase the easement or alter our practices, we consult with these important stakeholders to identify an appropriate solution.

During the reporting period, a 4.2km easement for 6.6kV overhead electricity wires located in State Forest in the Mountain Streams catchment was identified as having increased risk due to the high incidents of tree falls and damage to the electricity cables, and hence increasing the risk of bushfire in the locality and to ensure compliance with the Electrical Safety Act.

After informing State Forests and Department of Sustainability and Environment, the overhead line was removed and installed underground.  This undergrounding has not only reduced the bushfire risk in this locality, but has reduced the degree of vegetation management required in the easement.

Camden Gas Project

During the year, 75 wells were supplying coal seam gas to the Rosalind Park Gas Plant (RPGP), where the gas is compressed and fed into the local gas transmission network. A total of 10 new wells were drilled during 2007/2008.

One of the key environmental management matters at the Camden Gas Project is water use and wastewater disposal.  However, gas wells in the Camden Gas Project are comparatively dry compared with coal seam gas operations in other States and Territories.

Water Use

A total of 7.5 ML of water was drawn from the Sydney Water mains supply during 2007/08.  This water is primarily used for the drilling of new wells, and to a lesser extent for daily operations at the Rosalind Park Gas Plant (RPGP), office, living quarters and workshop. This volume is 700 kL less than the volume of water used during 2006/07.  During 2007/2008, 10 new wells were drilled, compared to 22 in 2006/2007.  The increasing preference in 2007/2008 was to drill surface to in seam (SIS) horizontal wells, as opposed to the more traditional deviated and vertical wells. Drilling SIS wells eliminates the need to hydraulically fracture the well’s coal seam, further reducing water consumption.  However, we have not yet done any detailed analysis on water use comparisons between SIS and vertical or deviated wells.

Rainwater continues to be collected from roof runoff of offices and other buildings at the RPGP, and stored in water tanks onsite. The quantity of this water is not metered, and is used for daily operations at the office, living quarters and workshop.

Wastewater

The following wastewater streams are managed at the Camden Gas Project:

Gas Process Water

During the treatment and processing of gas at the Rosalind Park Gas Plant, approximately 20 kL of oily water is generated each week. During April 2008, AGL installed a treatment facility at the RPGP to improve management of the oily water and reduce the quantities of wastewater taken off site for disposal.

The new treatment facility has a treating capacity of 24 kL per day and allows AGL to flow the treated water direct to the site’s evaporation pond. The only by-product of the process is a clay polymer that captures the oil particles and is disposed of through a normal trade waste bin to landfill. The system is fully automated and is designed with safety interlocks on all parts of the process.

It is anticipated that the new treatment facility will significantly reduce the site’s operating cost and there will be a reduced environmental impact from the disposal of this wastewater stream.  In 2007/08, 873 kL of oily water was disposed compared to 932 kL during 2006/07.

Produced Water

During the drilling of a well, water is injected into the coal seam to stimulate the coal seam to enhance gas production. This water is recovered, along with minor amounts of existing water within the coal, and is collected in lined pits or tanks and is referred to as produced water. Produced water recovered during the drilling of a well is collected onsite in lined drill pits or a water tank. With little to zero treatment, this water can be reused in the development of future wells. Surplus water which cannot be stored for future wells is taken off site for disposal at the Campbelltown City Council disposal facility.  During 2007/08, 6.1
ML of waste produced water was disposed off site.

Within the Camden Gas Project, there is an increasing preference to drill Surface to In Seam - Horizontal wells, as opposed to Deviated wells and Vertical wells. Drilling Surface to In Seam – Horizontal wells eliminates the need to hydraulically fracture the well’s coal seam, further reducing water consumption and consequently wastewater production.

Air Emissions

Environmental Regulation and Management

The Camden Gas Project operations are licensed under the NSW Protection of the Environment Operations Act 1997²³.  AGL continues to work closely with the NSW EPA and the NSW Department of Planning on resolving both historical inconsistencies between regulatory approvals and compliance monitoring and testing procedures resulting in sporadic exceedance of emissions concentrations at the Rosalind Park Gas Plant.  This has resulted in the requirement to report minor non compliances, however, no fines or penalties have been incurred.  AGL expects that licence inconsistencies will be resolved during 2008/09.

During 2007/08 Camden Gas Project underwent a comprehensive review of all environmental management and reporting obligations for both planning and EPA licensing.  Since the review there has been a large body of work undertaken to streamline environmental management, monitoring and tracking.  This work has included:

• Revising and improving the environmental management system used at the site. 

• Updating the operational environmental management plan to include recent additions to compliance obligations across the Camden Gas Project as a result of recently obtained planning approvals for expansion of the gas field.   Training for operational and management employees will be conducted during 2008/09.

• Review of numerous annual environmental reporting requirements to government departments, including the Department of Planning, EPA and Department of Primary Industries.  In consultation with the appropriate government departments, these reporting requirements were consolidated and streamlined to allow a single report, which meets all reporting obligations.

• As part of the review of legal obligations and revision of the EMS, Camden Gas Project is subject to a comprehensive environmental compliance audit every two years; the next such audit will be undertaken in early 2008/09.

The Ray Beddoe Gas Treatment Plant (which was the pilot plant set up when the Camden Gas Project was originally commissioned) is now decommissioned and site rehabilitation will be undertaken during 2008/09.

Energy Services Generation Facilities

The AGL Energy Services business builds, owns and/or operates small power generation facilities usually on site at energy customers’ facilities.  These include facilities that are fuelled by natural gas, biogas, landfill gas, bagasse and agricultural waste.

AGL Energy Services also owns and/or operates a series of landfill gas flaring facilities. 

All AGL Energy Services facilities are operated in accordance with the Life Guard HSE management system and are included in the annual external HSE management system audit process.

Construction Projects

In 2006/07 we began to report some aspects of the environmental performance of our larger construction projects, with a view of optimising our construction resources into the future.

The direct environmental impacts from our development and construction projects are currently monitored and managed in accordance with planning and environmental pollution control legislation. Our Health, Safety and Environmental management system, Life Guard, provides the overall standards and guidelines which need to be followed during the construction process, and site specific environmental management plans and external auditing are also used.  We continue to look at our development projects and seek ways in which we can reduce our impacts in addition to our regulatory responsibilities.

Hallett (Stage 1) Wind Farm, Brown Hill, South Australia

The Hallett (Stage 1) Wind Farm is located close to Jamestown in the mid north of South Australia. Construction work commenced early in 2006, and the wind farm was formally opened by the South Australian Premier, the Hon Mike Rann MP in June 2008. 

Comprising 45 X 2.1MW wind turbines and associated infrastructure, the wind farm is capable of delivering 94.5 MW of renewable energy capacity into the National Electricity Market.

The wind turbine foundations that were used are an innovative design, which reduces the environmental impact of the project.  The design uses rock anchors instead of the traditional “gravity” foundation approach. 

The rock anchor design comprises a compact concrete foundation that is approximately 7 metres in diameter and 2.3 metres deep that is anchored to the underlying rock via 8 x 20 metre long rock anchors.  These rock anchors are grouted into position and placed under tension.  The design reduces environmental impact by:

• Reducing the amount of excavation to one third of that required for a traditional gravity foundation.  This has reduced the requirement for disposal of fill off site.

• Reducing the volume of concrete for each foundation to one third of that required for a traditional gravity foundation.  This translates to a saving of 177 cubic metres per foundation or around 8,000 cubic metres for the project as a whole.

• Reducing the amount of steel reinforcing used on the project.

During 2007/08 the construction phase of the project utilised the following resources:

Hallett (Stage 2) Wind Farm, Hallett Hill, South Australia

The Hallett (Stage 2) wind farm will deliver 71MW installed capacity.  After obtaining early approvals, AGL began the pre-construction works during 2007/08.  The wind farm is scheduled for commissioning in 2010.

The Hallett (Stage 2) wind farm has also been designed with low impact rock anchor footings and will enjoy similar reduced environmental impacts.  As part of the planning consent conditions, Hallett (Stage 2) will provide an area of ecological set-aside.  During the environmental assessment process, a threatened native grass species was identified and a resultant area of land was acquired by AGL Energy and set aside for protection.  This set-aside land is excluded from development to ensure that threatened native grasses which are to be destroyed at the construction site (under approval from the local environmental protection agency) are maintained in this locality.

Bogong Power Development Project- Kiewa Scheme, Victoria

The Bogong Power Development project, which will form a part of the existing Kiewa Hydro Electric Scheme, comprises the construction of a 140 MW power station on the shores of Lake Guy, a regulating pondage located adjacent to the small village of Bogong in the Victorian Alps.  A 6.9km tunnel is being constructed to connect the new power station to the existing McKay Creek power station.  Construction commenced in October 2006 and is due for completion by the end of 2009.

One of the significant potential impacts from the Bogong Power Development project is the rock spoil resulting from tunnelling.  During 2007/08, tunnelling spoil was utilised for a major road re-surfacing and sealing program on the Bogong High Plains Road undertaken by the local government authority, the Alpine Shire.  Additionally, this spoil is being used to improve road access to West Kiewa Power Station and for back fill of the head pond structure.  Essentially, use of this spoil displaces the need to import materials for these road infrastructure improvements and other construction activities.

During 2007/08 the construction phase of the project utilised the following resources:

Berwyndale to Wallumbilla Gas Pipeline, Queensland and Wallumbilla Compressor Station, Queensland

During 2007/08, AGL Energy began the planning, consultation and approvals phase of two separate construction projects; the Berwyndale to Wallumbilla pipeline and the Wallumbilla compression station (Epic Energy premises) in Queensland.  Subject to receiving the appropriate approvals, it is expected that construction works will commence on both projects during 2008/09.

Environmental Performance at our main offices – The Green Office Program

AGL now has four main offices, located in Victoria, New South Wales and South Australia. We also have a fifth, growing office in Queensland, for which we will start tracking environmental performance in 2008/09.

In June 2008 we moved our head office from St Leonards to North Sydney. The new office is owned by Mirvac Property Trust and Eureka Funds Management (managed by Mirvac); and has completed a significant base building refurbishment and office space fitout. The building has been recognised with a 5-Star Green Star Rating by The Green Building Council of Australia. The building Owners have entered into a precommitment agreement with the NSW Department of Environment & Climate Change to target a 5 Star NABERS Rating. A 5 star rating is the highest rating available and represents exceptional building performance.

The actual rating achieved on completion of the building will be identified in a future rating of the AGL Energy offices. 

Water Use

The change in water use at our four main offices is a direct reflection of employee numbers. Between 2006/2007 and 2007/2008 employee numbers increased at our Spencer Street and Collins Street offices in Melbourne, whereas numbers decreased at our Eastwood (SA) and St Leonards (NSW) offices.

Paper Use

Paper use still remains a large environmental impact of our office operations.

Printed paper has reduced over the last year from 384 tonnes in 2006/2007 to 270 tonnes in 2007/2008.  It is anticipated that this drop was a result of the reduction in company size between the two reporting periods, and due to the drop in business activities requiring formal printed mailing events since the demerger period with Alinta in October of 2006. 

Office copy paper has increased slightly this year (2007/08) from 37 tonnes in 2006/07 to 41 tonnes in 2007/08.  In addition, paper use per person has increased from 21 kg per person to 25 kg per person.  A new paper reduction target will be investigated during 2008/2009.

Paper use from our bill printing operations was estimated to be 215 tonnes in 2007/08.  Paper used for payslip printing was approximately 4.2 tonnes.

During 2007/08 we conducted a review of the environmental credentials of the copy paper used in our offices.   100% recycled paper has been introduced to our Eastwood (South Australian) office and we are continue to undertake trials to find a suitable recycled paper for use at our head office.

In 2008/09, AGL will be moving to use a Greenhouse Friendly™ certified paper for our customer communications.

Waste management

We continue to strive to make improvements to our office recycling facilities, as our offices expand, relocate and employee numbers stabilise.  Our review of our office waste and recycling facilities will continue through 2008/2009.

AGL Energy remains part of the Cartridges for Planet Ark program and over the year returned a total of 1.2 tonnes of printer cartridges for recycling.  AGL took part in the Australian Mobile Telecommunications Association Mobile Muster and collected 24 kg of unwanted employee mobile phones, batteries and accessories to be diverted from landfill to be recycled and reused.

AGL employees that make use of the car park in our St Leonards, North Sydney and Spencer Street offices are required to subscribe to a Greenfleet program.  Greenfleet is a non-profit organisation, which offers a subscription, whereby they will plant enough trees to absorb the greenhouse gases that an average car produces in one year.

At 30 June 2008, 51 AGL employee cars were registered with Greenfleet.
In 2007/08-2008, 988 trees were planted at the base of Mt Korong near Wedderburn in Victoria as a result of AGL employee Greenfleet subscriptions

After assessing the key environmental impacts arising from our office activities through the 2007/08 environmental footprint, our Green Office Program for 2008/09 will focus on the following areas:

• Reviewing the use of recycled office copy paper for all offices

• Identify a paper use reduction target

• Reviewing and further improving our waste at recycling facilities at our Eastwood, Brisbane and new North Sydney offices

• Reviewing the fuel efficiency of our vehicle fleet
• Assessing the greenhouse rating of our offices.

Environmental Incidents

We had a total of 16 environmental incidents recorded in our corporate incident reporting system during 2007/08, twice the amount of incidents occurring in 2006/07.  Nine of these incidents occurred at the Torrens Island Power Station, which AGL acquired at the start of the year. During 2007/08 HSE management system training included a section on incident reporting and has increased the use of the incident management reporting system.

AGL Hydro

Three incidents were reported by AGL Hydro.  None of the incidents resulted in any notices or fines from regulatory authorities.

Two of the incidents comprised minor oil spills, one of which required investigation and clean up.

In February 2008, an incident occurred at the Eildon Regulating Pondage in Victoria. A control system fault on one of the discharge gates on the Eildon Regulating Pondage opened resulting in an uncontrolled discharge into the Goulburn River. The river height increased immediately downstream of the structure causing some flooding and damage to low lying properties immediately adjacent to the river. A full assessment of the area by the Broken-Goulburn Catchment Management Authority was commenced May 2008 and there has been no further action required by AGL as a result of this assessment to date. Compensation for property damage is being provided by AGL.

The resulting investigation conducted by AGL Hydro indicated a problem with the programming logic of the discharge gates control system. To prevent a recurrence, the gate control system is under currently being controlled manually. A new control system is scheduled to be installed by the end of 2008.

Torrens Island Power Station

Nine environmental incidents were recorded at Torrens Island Power Station involving oil spills and one chemical spill.  These were generally of a minor nature and contained at the site without soil or marine contamination.  On one occasion, oil sheen was found in the vicinity of the cooling water inlet of the power station. The EPA was notified the station’s marine spill response team was deployed and undertook a clean-up.

None of these incidents were classed as significant incidents or resulted in any penalty infringement notices or fines.

Camden Gas Project

The Camden Gas Project reported two incidents, one involving wastewater loss from a drilling storage pit and one involving a fuel spill after routine onsite refuelling.  Neither incident resulted in any notices nor fines from regulatory authorities and all incidents were remediated and resolved with no further actions required.

AGL Energy Offices

There were two minor incidents reported at our offices associated with light switches and a leaking hot water tap.