Environmental Performance Report 200102

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					Environmental Performance Report 2001/02
Contents




Profile of Tarong Energy .......................................1

This Report...........................................................1

Achievements and the Way Ahead ........................2

Our Commitment – CEO’s Message.....................3

Strategic and Sustainable Directions ...................4

Environmental Management Systems...................6

Economic Performance ......................................12

Social and Community Responsibility ................14
                                                                              Tarong Power Station (coal-fired)
Environmental Performance

     Air ................................................................20

     Water ............................................................23

     Resource Use and Waste ...............................25

     Land .............................................................27

     Incidents and Complaints ............................29

Verification Statement .......................................31

Glossary .............................................................32
                                                                              Tarong North Power Station Project (coal-fired)
Supporting Data.................................................33            Cover photo: Sue Ryan - Water monitoring Tarong Power Station
Profile of Tarong Energy                                                      This Report

Company      Tarong Energy Corporation Limited                                This report is the fifth annual Environmental
             (trading as Tarong Energy) is owned                              Performance Report (EPR) produced by Tarong
             by the Queensland Government.                                    Energy since commencing operations in July 1997.
Our business One of Queensland’s leading power                                It encompasses all the activities of Tarong Energy,
             generators. The core business is                                 and assesses its performance through reporting on
             generating electricity to sell into                              all significant and relevant activities from 1 July 2001
             the National Electricity Market                                  to 30 June 2002. The report also actively seeks to
             (NEM) and the wholesale trading                                  incorporate performance assessments across
             of natural gas in South Australia.                               social, environmental and economic parameters.
             A locality map is shown on the
             back cover.                                                      The report is published for a range of stakeholders
Established 1 July 1997.                                                      including employees and contractors, interested
Employees Approximately 370 people.                                           community groups, shareholders, suppliers and
                                                                              customers, project development partners, Local,
                                                                              State and Federal Governments.
                                                                              Tarong Energy’s 2001/02 EPR preparation has
                                                                              been guided by the Global Reporting Initiative (GRI)
                                                                              guidelines, feedback on the 2000/01 EPR provided
                                                                              by the Australasian Reporting Awards and third
                                                                              party comments submitted using the ‘Your Report
                                                                              Card’ feedback slip included in last year’s report.
Starfish Hill Wind Farm Project (artist’s impression)                         Tarong Energy is proud of its environmental
                                                                              performance and reporting track record.
                                                                              The 2000/01 EPR achieved the following
                                                                              acknowledgements:
                                                                              • won the Best Reporting of Environmental Issues
                                                                                at the Institute of Internal Auditors
                                                                                (Queensland) awards,
                                                                              • nominated as a national finalist for the Special
                                                                                Award for Environment Reporting Award by the
Wivenhoe Power Station (pumped storage hydro-electric)                          Australasian Reporting Awards (ARA); and
                                                                              • was ‘highly commended’ by the Electricity
                                                                                Supply Association of Australia (ESAA)
                                                                                Environment Report Awards for 2001.
                                                                              Tarong Energy also reports its financial
                                                                              performance and significant details of its
                                                                              operations, management, human resources and
                                                                              corporate performance in its Annual Report.
                                                                              All published reports are available from Tarong
                                                                              Energy and its web site www.tarongenergy.com.au.
                                                                                                                                         1
Terra Gas Trader trades gas from Moomba Gas Fields
(photo courtesy of Santos)

Values • Creative and commercial solutions to
          add value in a competitive market.
       • Customers as partners in our
         business future.
       • Our people (and their safety and
          development) as partners in one team.
       • A responsible partner in the community
         and the environment.
Total Assets                        $ 1874.3 million
Total Liabilities                   $ 1026.1 million
Revenue                             $ 602.3 million
Earnings before Interest and Tax $ 144.8 million
Operating Profit after Tax          $ 97.0 million
Environmental Project Expenditure $      6.4 million
This financial information relates to the consolidated economic entity
ie. Tarong Energy (Parent) Corporation Limited and all of its subsidiaries.
    Achievements and the way ahead


    A snapshot of Tarong Energy’s achievements this
    reporting year reflects the company’s diversification
    in energy sources, more rigorous analysis of social
    and community issues, together with economic
    impacts being regionally assessed for the first
    time. The outcomes presented reflect an evolution
    toward a more holistic performance assessment.




                          Our approach                     Key achievements                    Where to from here?

     Sustainability and   Leadership role in industry      • Starfish Hill Wind Farm           • Corporate workshops to
     corporate strategy   forums, development of             development approved.               progress sustainability.
                          corporate strategy, sourcing     • Greenhouse Strategy formalised.   • Consolidate leadership role
                          alternative energy sources and   • Commenced implementation            in Cooperative Research
                          applying eco-efficient             of Renewable Energy                 Centre (CRC) for Coal in
                          technologies.                      Business Plan.                      Sustainable Development.
                                                           • Local businesses re-using         • Research and apply best
                                                             by-products.                        practice technologies.
                                                                                               • Implementation of
                                                                                                 Renewable Business Plan
                                                                                                 and Greenhouse Strategy.

     Management           Ensure systems, policies and     • Wivenhoe Power Station (WPS)      • Corporate EMS progressed.
                          structures are in place to         achieved EMS certification        • Implementation of systems,
                          minimise risk and to               to ISO 14001 standard.              standards and plans to
                          implement decisions and          • Tarong Power Station (TPS)          minimise environmental
                          strategies from strategic to       maintained ISO 14001                impacts.
                          site levels.                       certification.                    • Continue environmental
                                                           • Environmental policy                education.
                                                             revised.

     Economic             Ongoing financial viability      • Major study of regional           • Continued commitment to
                          underpins regional economic        economic effects.                   supporting local and
                          contributions.                   • Contribution to local               regional economies.
                                                             employment, training and          • Use the regional economic
                                                             infrastructure.                     study findings to fit with
                                                                                                 regional economic priorities.

     Social and           Attention to workforce           • Consultation program              • Reduction in injury rates.
     community            conditions and support to          undertaken for Starfish Hill      • Quicker response to health
     responsibility       local and regional                 Wind Farm Project.                  and safety work orders.
                          communities.                     • Gained regular community          • Sponsorship and stakeholder
                                                             feedback at operating sites.        strategy developed.
                                                           • Development of safety
                                                             system to level AS 4801.
                                                           • Health risk and lifestyle
                                                             assessments for employees.
                                                           • Community support
                                                             through sponsorship and
                                                             Tarong Learning Program.
2
     Operations           Manage emissions in line with    • Greenhouse gas savings of         • Continue to implement
                          regulatory compliance as a         48,000 t CO2e                       Greenhouse Challenge
                          minimum and with the goal of     • Risk management strategy            Agreement and Generator
                          achieving best practice.           to prevent translocation of         Efficiency Standards
                          Have effective and appropriate     noxious fish.                       agreements.
                          incident response systems        • Plant improvements reducing       • Increase recycling of
                          in place.                          copper concentrations in water      stormwater at Tarong and
                                                             discharges to Meandu Creek.         Tarong North Power
                                                           • Dense phase ash system              Stations.
                                                             designed.                         • Construct and implement
                                                           • Improved land management            dense phase ash system.
                                                             at Wivenhoe Power Station.        • Develop alternative ash
                                                           • Two complaints were                 markets.
                                                             investigated.                     • Land management plan for
                                                           • No significant environmental        Tarong and Tarong North
                                                             incidents.                          Power Stations.
                                                                                               • Advanced Cycle Tarong
                                                                                                 North Power Station and
                                                                                                 Starfish Hill Windfarm
                                                                                                 Operational in 2003.
Our Commitment – CEO’s Message


I am pleased to present Tarong Energy’s fifth          Tarong Energy has developed a vision for the
Environmental Performance Report. This report          Corporation for 2010 to move towards being an
details comprehensive information on the               integrated wholesaler of electricity and gas having
environmental performance of our generating            a broad portfolio of generating assets across the
plant and operations. This year the report also        National Electricity Market. The Tarong site vision
includes more wide-ranging information about the       for 2015 is for a multi-fuelled, multi-purpose
role we play in our local communities and the          development that includes a combination of gas
health and safety of our people.                       and coal-fired generating plant.
The highlight of the year was our announcement of      The following strategies for 2002/03 have been
construction of South Australia’s first wind farm at   formulated in the context of the vision for
Starfish Hill, another component in diversifying the   Tarong Energy:
Corporation’s energy portfolio. We see this as an      • Continuing benchmark performance in operations;
important step to maximise the use of commercial
                                                       • Enhancing the Corporate safety and
renewable energy sources.
                                                         environmental strategies;
Further environmental commitments during the           • Deploying a broader gas strategy in South
year included formalising the Corporation’s              Australia and Queensland as well as meeting the
Greenhouse Strategy and signing the Generator            13% Gas Energy Policy targets within Queensland;
Efficiency Standards with the Commonwealth             • Developing renewable energy projects to facilitate
Government. Details of these initiatives are on          the Federal Government’s renewable energy
page 22.                                                 requirement; and
Wivenhoe Power Station also achieved                   • Assessing strategic transportation options for
environmental management systems accreditation           fuel and energy that could further enhance
to International Standards Organisation (ISO) 14001      shareholder value and mitigate market risk.
in the second half of the year and Tarong Power
Station maintained its ISO 14001 certification.
Our operating environmental performance was
solid. The Corporation continued to operate and
manage its business in full compliance with the
environmental regulatory operating and reporting
requirements during 2001/02. There were no
significant environmental incidents, although two
complaints about air quality were investigated.
Carbon dioxide emissions and carbon intensity are
reported on page 21 and comprehensive
environmental data is available on page 33.
We place a high priority on being an active
contributor to the development of the
communities in which we do business.
Our major business interests are in the South
                                                                                                              3
Burnett region and the economic impact of our
operations in this area was the subject of research
by the University of Southern Queensland.
The report revealed some significant direct annual
contributions and flow-on effects. Tarong Power
Station’s operations has seen an estimated
contribution to total employment of 1,618 full-
time equivalent jobs in the region while there has
been an estimated change in total output of
$518.5 million per annum. Further details about
                                                       Alan du Mée
the research findings are on page 13.                  Chief Executive Officer
Close relationships with our stakeholders, customers
and suppliers are an integral part of our long-term
strategic perspective. We work hard to develop these
relationships into partnerships wherever possible.
    Strategic and Sustainable Directions


    The concept of sustainability is often linked to the                  Sustainability has been defined as meeting the needs
    evaluation of social, environmental and economic                      of current generations without compromising the
    performance. The evolution in Tarong Energy’s                         ability of future generations to meet their own
    public reporting over the past five years reflects                    needs. Put simply, Tarong Energy believes
    a commitment to continual improvement and                             sustainability involves striving for a better
    emerging best practice across this and other                          quality of life for everyone, now and for
    industry sectors.                                                     generations to come.


    In practice this translates for Tarong Energy into the following:

     Environment                                     Social                                     Economic
     • Wise resource use, including                  • Maintaining close, positive              • Maintaining an economically viable
       maximising opportunities for                    relationships with local                   business, so that financial returns
       cleaner production; production                  communities.                               to stakeholders (including
       efficiencies, recycling, and reuse.                                                        employment and expenditure in
                                                     • Upholding community values whilst
                                                                                                  regional economies) continue.
     • Increasing energy generation from               supporting opportunities for
       renewable energy sources.                       community development.                   • Supporting local or regional
                                                                                                  businesses and employment.
     • Conservation and, where affected              • Supporting community education,
       by the business, rehabilitation of              awareness and involvement.               • Meeting electricity needs by
       the natural environment.                                                                   generating power at affordable rates
                                                                                                  for the community.




    Key Performance Indicators
     Indicator                                                                                                               Status
     Public reporting of economic, social and environmental performance
            • All targets reported against.                                                                                  Yes
            • KPIs reviewed against current best practice.                                                                   Yes
            • Key activities and impacts of Tarong Energy assessed.                                                          Yes
            • Environmental Performance Report independently verified.                                                       Yes
     Implementation of renewable energy corporate targets                                                                    (1)

    (1) status to be assessed and reported in 2003



    Outcomes (Targets 2001/02)
     Target                                                          Outcome                                                  Status
     • Develop environmental pre-qualification criteria for          Policies related to out-sourcing and supplier            5
       all suppliers and contractors.                                environmental performance developed.
     • Continue active involvement with the Cooperative              Member of the Board of the CRC.                          5
       Research Centre (CRC) for Coal in Sustainable
       Development.
4    • Demonstrate positive social, economic and                     Public report includes the three areas for               5
       environmental outcomes to the community.                      assessment and overall improvement.
     • Assess Tarong Energy’s sustainability performance             Indicators assessed within environment, social and       2
       against integrated sustainability indicators or indices.      economic areas. An integrated set of ‘sustainability
                                                                     indicators’ not yet developed.
    5=Achieved; 4=Underway; 3=Planned, approved and resourced; 2=Preliminary planning; 1=No action




    The Corporation’s 2010 vision is to move towards
    an integrated energy company that wholesales
    electricity and gas, with a broad portfolio of
    multi-fuelled, generating assets across the National
    Electricity Market (see the CEO’s Message and
    figure 1). Tarong Energy believes this vision is
    aligned with progress toward the concept of
    sustainability.
                                             Increased Efficiencies                                   Corporate Strategies
                                     Improved technology in Tarong North                       Greenhouse Strategy and Renewable
                                          Power Station will increase                         Energy Business Plan adopted in 2002.
                                      thermal efficiency over conventional                      Further development of safety and
                                                    technology.                                     environmental strategies.



               Transport                                                                                                          Re-use of By-products
       Assessing transportation                                                                                              Ash by-product re-used by businesses
  options for fuel and energy (i.e. rail).
                                                                                                                              and aggregate. Exploration of use
                                                                                                                                    as a soil conditioner.




       CRC for Coal in
   Sustainable Development                                                                                                        Broadening Gas Strategies
 Member of the Board and involved                                                                                            Alternative gas sources in South Australia
      in a leadership role.                                                                                                   and Queensland are being investigated.




               Renewable Energy Sources                                                                            Demand Side Management
             Starfish Hill Wind Farm operational                                                              Obligations under the Corporation's South
         in 2003. Preliminary evaluation of various                                                           Australian retail licence were met through
                                                                         Renewable                               innovative product offerings which
                   Government’s renewable                                                                            modify consumer behaviour.
                     energy requirement.                              Energy Certificates
                                                             Renewable Energy Certificates (REC’s)

                                                               (Electricity) Act 2000 were met for
                                                                      2001/02 trading year.
                                                              http://www.orer.gov.au/docs/certificates.pdf




Figure 1:
Snapshot of Sustainability Initiatives


Starfish Hill Wind Farm: Renewable
Energy Generation
Significant progress was made on the development
of the Starfish Hill Wind Farm Project.
Environmental, social and feasibility assessments
are complete and the project has planning and
environmental approval from the South Australian
Government. Construction of the $65 million project
is scheduled to start in the second half of 2002 and
is expected to be operational by Autumn 2003.                                                                                                                             5
The project comprises 23 1.5MW wind turbines,
with a total generation capacity of 34.5MW                                              Bill Bennett, former owner of the land where Starfish Hill Wind Farm
(enough for 18,000 South Australian households).                                        will be built.
Aspects assessed as part of the project were
visibility of the 100m high turbines and the risk
of birds striking the turbine blades. Key positive                                      Targets (2002/03)
outcomes for the project include an estimated
                                                                                        • Demonstrate progress against Corporate
saving of up to 2.1 million tonnes of CO2e over
                                                                                          Greenhouse Strategy targets including:
the 25 year life span.                                                                    • Corporate carbon intensity 925kg CO / MWh.
                                                                                                                                 2
                                                                                          • Achievement of Renewable Energy Business Plan.

                                                                                        • Continue to progress development of Starfish
                                                                                          Hill Wind Farm to achieve operation in 2003.
                                                                                        • Develop internal sustainability measures.
    Environmental Management Systems


    For Tarong Energy, ‘management systems’ refers to processes and procedures to deliver environmental, social
    and financial outcomes at strategic and operational levels within the organisation. They provide the
    necessary progression and consistency between strategy, implementation and performance. Key elements
    include strategic committees, policies, our environmental management system (EMS), reporting and
    auditing activities, and training.


    Key Performance Indicators

     Indicator                                                                                              2001/02
     Environmental Policy
     Action undertaken to progress performance in all areas of Environmental Policy                         Most areas progressed
                                                                                                            (Page 7)
     Corporate Structure
     Active Executive Environmental Committee                                                               10 meetings held.
     Procedures evident to incorporate environmental issues into all levels of the organisation             Yes
     Environmental Systems
     Environmental Audits undertaken                                                                        Yes (table 1)
     ISO 14001 accreditation achieved and maintained at operating sites                                     Yes
     Training
     Number of employees involved in internal training                                                      15 teams out of 18.
     Number of TPS and WPS employees undertaking external environmental training                            23
     Environmental Performance
     Score against ESAA Code of Environmental Performance (maximum score of 5)                              3.5
     Regulatory Issues
     Number of non-compliances with legislative requirements.                                               0




    Outcomes (Targets 2001/02)

     Target                                               Outcome                                                           Status
     Training
     Development of environmental induction video.        Completed and incorporated into induction process.                5
     Develop a training plan in 2001/02 to                Training needs/environmental awareness survey undertaken          3
     deliver Corporation wide environmental               at Tarong Power Station but further development delayed
     training to Tarong Energy personnel and              by overhauls.
     long-term contractors.
     Management Systems
     Progress formulation of EMS at Wivenhoe              Certification achieved June 2002.                                 5
     and commence implementation.
6    Progress formulation of EMS at                       EMS gap analysis audit undertaken.                                4
     Corporate level.
     Review process for implementation of audit           Some improvement. External audit report goes to Audit and         2
     recommendations.                                     Compliance Committee.
                                                          QA work request initiated for development of audit
                                                          follow-up process.
     Reporting
     Evaluate the feasibility of voluntarily increasing   Tarong Energy participated in an ESAA working group on NPI        4
     NPI reporting indicators from 36 to 90               indicators, monitoring and reporting methods for power
     substances ahead of the regulatory requirement.      stations. NPI reporting is being reviewed against the outcomes
                                                          of this working group.
     Incorporate stakeholder feedback into the            Four responses were received. Comments were incorporated          5
     Environmental Performance Review for 2001/02.        where appropriate.
     Review environmental KPIs and reporting              KPIs for this EPR were reviewed to reflect international          5
     requirements.                                        reporting standards and a focus on the Corporation’s expansion
                                                          and diversification.

    5=Achieved; 4=Underway; 3=Planned, approved and resourced; 2=Preliminary planning; 1=No action
Environmental Policy

 Tarong Energy generates electricity at Tarong and Wivenhoe Power Stations in Queensland, trades gas in the South
 Australian market and is actively seeking to diversify its energy portfolio. In carrying out our business we will balance
 our responsibilities to protect the environment and the communities in which we operate with our operational needs.

 We are committed to an organisational culture which continually pursues improvement and excellence in the
 environmental performance of our activities. We will:

 Policy element                                         Implementation 2001/02

 Develop and maintain integrated environmental          Wivenhoe Power Station certified to ISO 14001 in 2002.
 management systems across all aspects of our           Tarong Power Station maintained certification to ISO 14001.
 business.                                              EMS being developed for Tarong North Power Station.
                                                        Corporate EMS being reviewed (Page 8).

 Strive to incorporate the principles of ecologically   Initiatives in greenhouse gas emissions and renewable energy
 sustainable development into our business.             undertaken. Renewable Business Plan developed. Social and economic
                                                        indicators incorporated into this report (Pages 12 and 14).

 Train our employees and contractors so that we         Environmental requirements included in induction. Formal and
 all understand our environmental obligations.          informal training as appropriate (Page 9).

 Efficiently use natural resources including fuels      Tracking and reporting on resource use. Undertaking projects to
 and water, and reduce, reuse or recycle wastes.        reduce water consumption. Facilitating re-use of coal combustion
                                                        products by others. Using recycled waste oil and waste lime products
                                                        (Pages 23 and 25).

 Utilise research and the implementation of             Participation in CRC for Coal in Sustainable Development. Use of
 commercially viable technologies to manage             most up-to-date technologies for emissions control at Tarong North
 environmental impacts.                                 Power Station (Page 5).

 Reduce emissions of greenhouse gases by                Finalised Greenhouse Challenge Agreement and signed Generator
 striving for an ongoing improvement in our             Efficiency Standards Deeds of Agreement. Targets set for carbon
 overall carbon intensity.                              intensity (Page 20).

 Be a responsible partner in the community and          Maintained relationships with business, government, energy industry
 involve the community in relevant aspects of           and the community (Page 14).
 our business.

 Recognise and work to meet the needs of                Consultation with indigenous people associated with development
 indigenous people associated with our activities.      projects at Chinchilla (mine and rail) Project and Starfish Hill (Wind
                                                        Farm). Indigenous Land Use Agreement (ILUA) in the process of
                                                        being finalised for the Chinchilla Rail Project. Cherbourg Community
                                                        Council and ATSIC Regional Council represented on Tarong Power
                                                        Station Consultative Committee.

 Comply with all relevant corporate and legal           No non-compliances in 2001/02. Voluntary agreements with EPA to
 requirements, as a minimum.                            improve environmental performance at Tarong Power Station.               7
                                                        Maintained relationships with relevant regulatory agencies (Page 19).



Organisational Structures for
Environmental Management
Environmental management requirements are
embedded at all levels of Tarong Energy.
Figure 2 provides an overview of the organisational
structure and information flows for environmental
management within Tarong Energy.
At the Corporate Level, the Manager Environmental
Strategy, supports strategic and policy directions in
environmental management. The Executive
Environment Committee (see Page 8) is a key forum
for managing corporate environmental directions.
    Environmental Management Systems                                                       (Continued)


                                                    Approve strategic directions and corporate policy.
                                                     Review environmental targets and performance.
                                                  Accountability for environmental performance
                                                           to Shareholding Ministers




          Monthly Board
      Environmental Reports                                             Board                                                Board Response
                                                                    7 Board Members


    Board Papers on Key Issues          Audit and Compliance                                   Performance
     & Business Unit Papers                                                                     Committee
                                             Committee
                                                                    Administration
                                                                     Committee


                                                                        Corporate
                                                     Encourage strong environmental commitment.
           Human            GM                                  Review business priorities.                                  GM          Finance
          Resources                                 Develop strategic direction and corporate policies.
                                                        Set environmental performance targets.
                                                                Coordinate management

                                  GM                                                                                    GM
                                                         Chief                           Manager                             Corporate
                    Operations                      Executive Officer             Environmental Strategy                      Services
        HSE Operations                                  Executive Environment Committee                                                  Corporate
       Management Review                       GM                                                     GM                                  Affairs
             Group                                                         GM
                                        Operations                                                         Marketing
     Site HSE                          Development                                                        and Trading
    Committee                                                       Asset Strategy



    Figure 2:                                        Implement corporate strategies and policies.
    Corporate Structure                  Manage operational implementation of environmental issues at site level.
                                                     Achieve environmental performance targets.
    This diagram only schematically
    represents the consolidated
    entity of Tarong Energy.



    Executive Environment Committee                                         Management Systems
    (EEC)                                                                   Overview of Tarong Energy’s Environmental/Social
                                                                            Management Systems.
    The EEC was established at the end of the previous
    reporting year and met ten times in 2001/02.                            Tarong Energy has ISO 14001 accredited
    The key EEC functions are to :                                          Environmental Management Systems (EMS) at
                                                                            both its current operating sites and is also
    • Co-ordinate environmentally sustainable                               developing corporate environmental management
8     innovation within the Corporation and promote                         procedures and systems. It is also Tarong Energy’s
      organisational environmental awareness.                               intention to develop environmental management
    • Review and determine the Corporation’s                                systems at all new operating sites, including
      strategic environmental direction and position                        Starfish Hill Wind Farm and Tarong North
                                                                            Power Station.
      on matters of environmental significance and,
      as necessary, refer appropriate matters to the                        As part of the EMS, annual environmental
      Tarong Energy Board for approval.                                     programs are being developed for each site.
                                                                            At the corporate level, a five year plan is being
    In 2001/02, the EEC has been involved in                                developed to guide environmental management
    reviews of the 2000/01 EPR, development of                              initiatives. Each site EMS contains monitoring
    the Corporate EMS, Generator Efficiency                                 requirements to ensure that performance
    Standards, Greenhouse Challenge Agreement,                              indicators set in the EMS or by regulation are met.
    a new Environmental Policy and corporate
    compliance processes.                                                   Six external and 16 internal audits were
                                                                            undertaken in 2001/02 to review performance of
                                                                            the EMS (see Table 1). In addition, internal
                                                                            housekeeping inspections are completed monthly
                                                                            by most teams.
Table 1: Number of Audits Undertaken 2001/02                               Update on Corporate EMS Development
                                            Number of Audits
                                                                           A gap analysis audit was undertaken in early 2002
                                                   (1)               (2)
                                                                           to identify improvements needed in Tarong
                                        Internal         External          Energy’s Corporate EMS to achieve compliance
 Corporation                                 1               2             with ISO 14001. The analysis found that a large
 Tarong Power Station                       12               3             proportion of the documentation required for an
                                                                           ISO 14001 EMS was already in place, however
 Wivenhoe Power Station                      2               1
                                                                           some documentation was focussed on Tarong
 Tarong North Power Station                  1                -            Power Station rather than taking a corporate view.
 TOTAL:                                     16               6             Additional procedures were identified in the areas
                                                                           of project management, environmental
(1) Includes operational, construction Environmental Management            management plans, objectives and targets, and
    Plan (EMP), ESAA Code of Environmental Practice and land               monitoring and measurement. The need for improved
    management audits.
                                                                           electronic document management and corporate
(2) Includes EMS surveillance, certification and gap analysis audits
                                                                           training and awareness-raising was also identified.
    and EPR verification.
                                                                           Development of the Corporate EMS will continue
                                                                           in 2002/03.


                                                                           Training and Awareness
                                                                           In 2000/01, the induction process was reviewed
Executive                                                                  and one of the key recommendations was to produce
Environment                                                                employee and visitor induction videos to ensure all
Committee                                                                  new starters and visitors receive consistent
                                                                           information about the Corporation, its procedures
                                                                           and policies. These videos were produced during
                                                                           the year and are now being used as part of the
                                                                           induction of new employees and contractors.
                                                                           In 2001/02, environmental awareness training was
                                                                           largely presented through a new format: Toolbox
                                                                           Talks. These involved environmental personnel
                                                                           visiting Tarong Energy sites to discuss
                                                                           environmental matters as part of routine team
                                                                           meetings (teams range from about six to 40
                                                                           people, and 15 of the 18 teams at Tarong and
                                                                           Wivenhoe Power Stations were visited in 2001/02).
                                                                           The Toolbox Talks occur in the workplace, allowing
                                                                           a focus on environmental issues and impacts facing
Executive Environment Committee from left to right are as follows:
                                                                           individual teams, rather than a more generic class-
Alan du Mée:        Chief Executive Officer                                room based training approach. These sessions
Alan Hayter:        Manager Environmental Strategy
Andrew Kremor:      General Manager - Marketing and Trading
                                                                           were used to update teams on environmental
Burt Beasley:       General Manager - Operations Development               management matters around the sites and at a
Howard Morrison:    General Manager - Asset Strategy                       corporate level, discuss specific issues affecting
                                                                           each team, and conduct an environmental               9
                                                                           awareness survey. These environmental awareness
Wivenhoe EMS Certification Achieved                                        survey results will be available early in 2002/03
                                                                           and will provide a framework for formal and
Wivenhoe Power Station achieved its ISO 14001                              informal training needs.
EMS accreditation in June 2002. This was a
significant milestone for the station’s 12 person                          A summary of internal and external environmental
operating team. Support was provided by                                    training is provided in Table 2.
environmental officers from Tarong Power Station.
Some of the key aspects and impacts addressed in                           Table 2: Training and Awareness
the EMS are:                                                                Type of training /      Attendees
• management of hydrocarbons to ensure that any                             awareness provided
  hydrocarbon spills can not enter Lake Wivenhoe;                           Internal                10 individuals
• management of weeds and habitat on the 604                                                        15 teams out of 18
  hectare site; and
                                                                            External                23 individuals
• management of oily and other wastes.
                                                                            Induction               New employees and
                                                                                                    contractors
     Environmental Management Systems                                                          (Continued)



     Industry Code                                                             Performance against each policy area is shown
                                                                               graphically in Figure 3. Tarong Energy has
     ESAA Code of Environmental Performance                                    maintained its overall score compared with the
                                                                               previous year and is approximately in line with the
     Tarong Energy has assessed itself against the ESAA
                                                                               industry average score for the Code assessment.
     Code of Environmental Performance as a means to
                                                                               Tarong Energy recognises the need to continually
     track environmental performance against
                                                                               improve integration of environmental management
     recognised industry guidelines.
                                                                               systems into site and corporate operations and
     The Code was revised in 2000 and now has four                             Table 3 identifies a number of areas of focus to
     main policy areas (Community Participation was                            improve the score in 2002.
     incorporated into Social Responsibility).



     Table 3: Recommendations to Improve ESAA Code Score

      Policy Area                              Recommendations to Improve Score
      Sustainable Development                  • Support research and development regarding significant environment and social issues.
      Social Responsibility                    • Further integration of environment into existing management practices.
                                               • Act prudently (particularly in relation to electro-magnetic fields) when designing and
                                                 operating plant.
      Environmental Management                 • Review Environmental Policy, establish clear corporate objectives and targets.
                                               • Ensure environmental responsibilities are identified and relevant for all activities.
      Resource Management                      • Promotion of efficient and responsible production, transmission and use of
                                                 electricity including renewable energies.


     Some of the activities identified in Table 3 to improve future scores have already been commenced or
     completed. For example, the Environmental Policy has been reviewed and is presented on Page 7.



      5



      4



      3



      2                                                                                                                          1999 Tarong Energy Score
                                                                                                                                 2000 Tarong Energy Score
                                                                                                                                 2001 Tarong Energy Score
      1                                                                                                                          Industry Mean Score
                                                                                                                                 Industry Maximum Score
                                                                                                                                 Industry Minimum Score
      0
            Sustainable               Social              Environmental            Resource              All Policies
            Development            Responsibility          Management             Management             Combined



10   Figure 3: ESAA Code of Environmental Performance 1999-2001
     Note: a review of the Code was undertaken in 2000 and therefore the 2001 results are not directly comparable to earlier results.
Environmental Reporting                                           Targets (2002/03)
Tarong Energy undertakes voluntary and regulatory                 • Undertake 50% of activities outlined in Table 3
reporting activities to fulfil its commitments                      to maintain or improve score against ESAA Code
regarding regulatory compliance and to involve                      of Practice.
and inform the community and other stakeholders
                                                                  • Continue to progress Corporate EMS
of its activities (refer Figure 4 below).
                                                                    development.




                                              Environmental Regulation              National Pollutant Inventory
                                 • Report on compliance with Environmental          • Tarong Energy monitors emissions in
                                                            Authority (licence)       accordance with NPI requirements
                                   • Annual returns for Wivenhoe and Tarong         • NPI Report for 2000/01 submitted in
                                    Power Stations lodged October 2001 and            September 2001
                                                               February 2002        • NPI report for 2001/02 to be submitted
                                      • Both annual returns accepted by EPA.          in September 2002
                                  • Assessment of environmental, social and         http://www.environment.gov.au/epg/npi/
                                           other matters relating to proposed
                                        Starfish Hill Wind Farm development
                                                  and 66 kV transmission line


                                                                            Regulatory




                                                                           Internal
                                                                Monthly, quarterly and annual
                                                                 environmental reporting is
                                                                 undertaken across various
                                                                 elements of the organisation
                                                                     (see also Figure 2
                                                                    Corporate Structure)




                                                                           Voluntary
                                                                                                                                11
                                      Environmental                    Greenhouse
                                                                   Challenge Agreement              ESAA Code
                                 Performance Report
                           •Tarong Energy has prepared          •Second Greenhouse Challenge        •Tarong Energy completes
                                       EPRs since 1997          Agreement finalised with AGO        annual audit against ESAA
                                  •The 2001/02 EPR is                 in November 2001.             Code of Practice.
                                  guided by EA and GRI             http://www.greenhouse
                                  reporting frameworks                .gov.au/challenge/
                           •Previous reports available at          Generator Efficiency
                             www.tarongenergy.com.au               Standards Agreement
                                                                    •Signed with AGO in
Figure 4:                                                              November 2001
Outline of                                                      • Negotiating "Menu of Options"
Reporting Activities
     Economic Performance


     Economic performance encompasses maintaining
     the financial viability and profitability of a business
     which in turn influences the direct and indirect
     economic impacts across the regions where the
     company operates. Employment, training and
     apprenticeships, provision of infrastructure and
     stimulus for other economic activity are also
     important effects of operating in rural centres
     (see table 4). This section presents and assesses
     Tarong Energy’s economic activities for the first
     time alongside environmental and social performance.




     Water releases from TPS are an important source of irrigation water          Aerial view of Tarong North site
     for downstream farmers




12

     People working for Tarong Energy


     Financial Indicators (2001/02) (1)
                                                                                                                                Outcome
      Revenue                                                                                                                   $ 602.3 million
      Operating Profit after Tax                                                                                                $ 97.0 million
                                                                                                                (2)
      Wages and Salaries (including oncosts), Training, Employee Benefits, Contract Employees                                   $ 52.9 million
      Environmental Project Expenditure (2)                                                                                     $    6.4 million

     (1) This financial information relates to the consolidated economic entity ie. Tarong Energy (Parent) Corporation Limited and all of its subsidiaries.
     (2) Includes operating and capital expenditure.
Table 4: Examples of Tarong Power Station’s Local Business Interactions
 Stakeholder group                                          Interaction
 Envirospheres                                              Provision of cenospheres (by-product) as a raw material.
 Pozzolanic                                                 Provision of ash (by-product) from Tarong Energy.
 Local suppliers and contractors                            • The Corporation’s Procurement Policy focuses on the local provision of goods
 (all sites)                                                  and services.
                                                            • A Draft Regional Development Strategy was developed to facilitate involvement
                                                              of local contractors in the Chinchilla Rail Project.
                                                            • Tarong Business Program coordinates involvement of local businesses and
                                                              contractors in work at Tarong North Power Station Project. The Program
                                                              maintains a database with more than 1500 listings of local goods and services.
                                                              More information at http://www.southburnett.biz/
                                                            • The Yarraman Heritage Centre has been engaged to provide tour guide services
                                                              for the tourist coaches that visit the Station.
                                                            • Also see Table 6 – Summary of Key Interactions with Community Groups.


 Change in Household Income $88.9m                                                                        Change in Value Added $285.9m
                                                                                                                                      (68% of GRP)




                                                      -Bay Burnett R
                                                 Wide               egi
                                              on                       on
                                           ct        l Combustion
                                         pa      Coa                      Ec
                                                                            o
                                       Im           oducts $1.6m
                                                   r   P
                                                                                              no
                              ll
                           era




                                                                                                my
                         Ov




                                                            ontributio
                                                        ct c
                                                                                                   TE Goods and




                                                                      n
                                                     ire rnett Regio s
                                                                                   on
                                                                                                     Hou




                                                         u           n
                                                Widebay D




                                                                    to l Economy
                              chase of Goods




                                                                                    Ser
                                ervices $4.5m




                                                        B
                                                                      a




                                                                                                        seholds Expendit
                                                       -




                                                                                       vices $14.5m




                                                            Tarong
                                                             Power
                                                            Station
                            nd S
                           Pur
                           a




                                                                                                                        ure
                         Ov
                           era




                                                                                                   y
                                                                                                  m




                                   Im
                              ll




                                                                                                no




                                     pa Water D                         co
                                       ct        eliveries $1.95m     nE
                                          on                       gio
                                             Wid                  e
                                                e-Bay Burnett R


                                                                                                                                                     Figure 5: Tarong Power
                                                                                                                                                     Station - Wide Bay-Burnett
 Total Employment 1618 FTE Jobs                                                                        Change in Total Output $518.5m
                                                                                                                                                     Regional Economic Relationships

Regional Economic Contribution                                                                                                • Workforce skills and earnings which have been
                                                                                                                                improved by the migration of skilled people to
Understanding Tarong Energy’s role in the                                                                                       the area and on-the-job training for local
region’s economy is an important step in the                                                                                    employees gaining employment at the Tarong             13
future planning and allocation of resources.                                                                                    Power Station.
A comprehensive regional economic study by the
                                                                                                                              • Infrastructure and development associated with
University of Southern Queensland, on behalf of
                                                                                                                                the operation of the power station, particularly
the Corporation, examined the economic impact                                                                                   an improved road system provision of recreation
of Tarong Power Station and Tarong Energy on the                                                                                facilities and irrigation water supply systems.
Wide Bay-Burnett Region. It was completed in
2002 and provides useful analytical information                                                                               The construction phase of the new Tarong North Power
to assess Tarong Energy’s direct and indirect                                                                                 Station employed large numbers of people.
economic contribution and future direction.                                                                                   At the peak workforce in March 2002 of 884 people,
                                                                                                                              32% of the wages employees were local labour.
According to the research results, the economic
benefits to an essentially rural community of
Tarong Power Station are:
                                                                                                                              Targets (2002/03)
                                                                                                                              • Develop and track indicators of environmental
• Income support, providing alternative source                                                                                  expenditure associated with incidents.
  of income for existing businesses, such as farms.                                                                           • Support business prospects and opportunities
  This has enabled the retention of population and                                                                              for coal combustion products.
  employment in the region.
     Social and Community Responsibility


     Social and community support and responsibility                             The provision of apprenticeships and learning
     encompasses good corporate governance, our                                  programs are examples of the latter. Fostering
     employees, local communities near to our                                    and maintaining a positive relationship with
     operating and development sites at Tarong,                                  stakeholders and interest groups is critical to the
     Wivenhoe, Chinchilla (Queensland) and the                                   ongoing viability of the Corporation. Tarong
     Fleurieu Peninsula (South Australia), and the                               Energy interacts with broader stakeholder groups
     regional community which often spans large                                  of government, business, the electricity industry,
     distances. We view ‘support’ as including financial                         and environmental organisations as well as our
     and in-kind assistance and sponsorship to                                   workforce and regional and local communities.
     community causes and organisations, in addition                             Figure 6 provides an overview of these interactions.
     to education, awareness-building and training.




                                    Business and Industry                                              Energy Industry
                              •Chambers of Commerce •Suppliers                            •Customers •Transmission and distribution
                                   •Contractors •Partners                                     companies •Industry associations
                                                                                                   •NEMMCO •Retailers




                Local Community
        •South Burnett, Esk and Chinchilla
          Fleurieu Peninsula, Brisbane                                                                              Employees and Trainees
            •Water advisory groups                                                                               •Employees •Contractors •Unions
      •Landcare groups •Schools and colleges                                                                       •Trainees •Apprenticeships
               •Indigenous groups


                                                                       Government
                                                                   •Shareholding Ministers
                                                               •State and Federal members for
                                                               Queensland and South Australia
                                                         •State and Federal Government agencies for
     Figure 6:                                                 Queensland and South Australia
     Community Interactions                                     •Federal Government agencies
                                                                       •Shire Councils




     Key Performance Indicators
      Indicator                                                                                                                       2001/02
      Corporate governance
                                                                                                                                      (1)
      • Existence of a policy, procedures/management systems, and compliance mechanisms, including results
        of surveys measuring customer satisfaction and audits.
14    Community support
                                                                                                                                      (1)
      • Contributions to community programs and initiatives.
        eg number of initiatives supported.
                                                                                                                                      (1)
      • Support for developing community capacity (number initiatives, number employees)
        eg learning, education, awareness, increasing skills.
                                                                                                                                      (1)
      • Active consultation with the local community regarding site operations
        (number of meetings per year, number and dissemination of information sheets,
        involvement of senior managers).
                                                                                                                                      (1)
      • Active engagement with indigenous people regarding site operations and development projects.
      Health and safety
      • Accreditation of Health and Safety Management System to AS 4801.                                                              90%
      • Implementation of Annual Health and Safety Improvement Plan.                                                                  100%
      • Lost Time Injury Frequency Rate (employees and contractors) < 5.0 – Generation (2)(3).                                        4.4
      • Lost Time Injury Frequency Rate < 5.0 – Tarong North Construction Project (3).                                                2.0
      • Improve reporting of incidents > 10.                                                                                          82
      • Close-out of 90% of Health and Safety Work Orders within one month – Generation.                                              75

     (1) Planned to commence reporting in 2003.
     (2) Generation refers to our core business of electricity generation and associated activities.
     (3) All injury statistics include contractors.
Outcomes (Targets 2001/02)

  Target                                      Outcome                                                                         Status
  Maintain positive and effective             Maintained positive community interactions with communities at Tarong           5
  community interactions                      Power Station and Chinchilla mine/rail Project. Established positive
                                              community interactions with community at Starfish Hill (South Australia).
                                              See also page 18 for additional detail.
  Continue to support the                     Donations and sponsorships continued. Refer Table 6 for details.                5
  community through sponsorship
  and mentoring programs
  Establish a community                       The Corporation decided not to implement a formal consultation process          3
  consultation process for                    at this time. Positive community interactions and involvement established
  Wivenhoe Power Station                      in 2000/01 during development of the Land Management Plan have been
                                              maintained. See page 28.
  Continue to build effective                 Continued involvement with the National Generator’s Forum and the               4
  communications with national and            Queensland Generator’s Environmental Forum.
  state representative organisations
  Accreditation of Health and Safety          Pre-certification audit undertaken, recommended that system was ready for       4
  Management System to AS 4801                certification audit.

5=Achieved; 4=Underway; 3=Planned, approved and resourced; 2=Preliminary planning; 1=No action




Employees
Tarong Energy has approximately 370 employees                            Implementation of the Equal Opportunity Policy
located in the South Burnett region, Fernvale,                           aims to create a culture that embraces diversity so
Brisbane and Adelaide.                                                   that Tarong Energy and its people can realise their
                                                                         potential. This is overseen by an Equity
Tarong Energy has an Equal Opportunity Policy
                                                                         Leadership Group.
that includes areas such as recruitment, induction
and remuneration and performance review.

                                                                                     (1)
Table 5: Examples of interactions with employees and trainers

  Tarong Learning Program                                                 ,
                                     • 812 training places provided by TLP 436 in 2001/02 (to employed and
  (TLP)                                 unemployed people, mostly from the Wide Bay-Burnett Region).
                                     • 113 new jobs obtained on TNPS site by TLP graduates, 47 of these in 2001/02.
                                     • Tarong Energy contributed about $102,000 in funding and $112,000 in kind
                                        (equipment, materials) in 2001/02.
                                     • Program will wind down at end of 2002 on completion of construction at TNPS.
  Wide Bay Group Training            • 23 apprentices and trainees at Tarong Power Station.
  Tarong Energy employees            •   New three year Enterprise Bargaining Agreement implemented in 2002.
                                     •   Employee input sought into new Shared Values Statement to be completed in 2002/03.
                                     •   First phase of new Learning Strategy introduced.
                                     •   Succession plans have started to be developed for key roles.
                                     •   Annual Performance Feedback Review to assess training and development
                                          opportunities and establish employee development plans.                                      15
                                     •   Induction process revised and new videos produced.
                                     •   Employee Relations Strategy development.
                                     •   Employee Health Safety and Environment Handbook prepared.
                                     •   Internal communication via:
                                          • Weekly and monthly newsletters and information bulletins.

                                          • Employee hotline.

                                          • Team meetings and briefings.

                                          • E-mail, intranet and internet access.

                                          • Updates from CEO and visits of management and staff to different sites.

                                          • Board meetings, involving site employees, being held at Tarong Power Station.

                                     •   All teams represented on Health, Safety and Environment Committees.
                                     •   Workforce representation on Operations Business Health Safety and Environment
                                         Management Review Group.
                                     •   Annual improvement plan developed to guide health and safety initiatives .

(1) More details available in Annual Report
     Social and Community Responsibility                                    (Continued)



     Health and Safety                                           Injuries
     Highlights                                                  While lost time injury (LTI) targets were achieved
                                                                 for the year, regrettably, five LTIs occurred in the
     • The five-year Health and Safety Strategy continued
                                                                 generation business. Four of these involved
       to be implemented during the year. A principal
                                                                 contractors assisting with major overhauls at Tarong
       objective was consolidating many of the safety
                                                                 and Wivenhoe Power Stations. Major overhauls
       initiatives introduced during 2001, including KPI
                                                                 also led to an increase in other injuries but there
       measurement and reporting, incident management,
                                                                 was an overall decrease in recordable injuries of
       hazard inspections and increasing line
                                                                 21% which is a significant achievement.
       management accountability for safety.
                                                                 At Tarong North Power Station (TNPS)
     • Individual and confidential health risk and
                                                                 construction site, three LTIs occurred. The lost
       lifestyle assessments for all full time operating
                                                                 time injury frequency rate (LTIFR) at TNPS,
       site and corporate office employees were
                                                                 of 2.0, is a good result given the high-risk nature
       introduced for the first time in 2001/02.
                                                                 of the construction project and we commend
       Some 244 employees (70% of those to whom
                                                                 the continued safety management performance
       the program was offered) were tested during
                                                                 of all contractors associated with the Tarong
       this program, which was provided at the
                                                                 North Project.
       Corporation’s expense.
     • Behavioural safety audits were introduced during
                                                                 Health Surveillance
       the year at Tarong and Wivenhoe Power Stations.
       Work teams now have a safety rating as a key              Health surveillance of Tarong Energy personnel
       performance indicator linked to the employee              during the year included 186 lung function
       performance remuneration scheme and the audits            tests/respiratory symptom evaluations, 213
       also identify opportunities to further reduce risk.       audiometric tests, nine vision tests and 21 blood
       The average safe behaviour rating was 85%.                sugar levels. No work-related abnormalities were
                                                                 detected. On-site nursing staff also administered
                                                                 111 influenza vaccinations and conducted 470
                                                                 blood pressure and body mass index tests.
                                                                 Forty-two counselling sessions were held through
                                                                 the confidential Employee Assist Program.

                                                                 Community Interactions
                                                                 Tarong Energy has maintained its active
                                                                 involvement in the South Burnett and
                                                                 Wivenhoe/Fernvale communities. New projects in
                                                                 Chinchilla and the Fleurieu Peninsula have led
                                                                 Tarong Energy to establish consultation networks
                                                                 in these communities, for exchanging information
                                                                 and views on the proposed projects and as a
                                                                 foundation to ongoing relationships. (Table 6).
                                                                 Tarong Energy regularly contributes to local
                                                                 organisations and supports worthwhile projects.
16
                                                                 All sponsorship and donation proposals received by
     Picture above: Emergency team undertaking weekly training   Tarong Energy are evaluated according to specific
                                                                 criteria to ensure the opportunity meets Tarong
     • Incident reporting was improved through a new,
                                                                 Energy’s strategic goals. Some examples of some
       simplified HSE Incident/Improvement Card.
                                                                 of our sponsorships and donations are shown in
       Implementation of this simplified reporting process
                                                                 Table 6.
       has had a significant positive effect by more than
       doubling the number of incidents reported.                Tarong Energy values the positive relationships it
                                                                 has established and maintained with the
     • During the year, the Corporation extended its
                                                                 community.
       influence over safety performance outcomes for
       contractors, with the aim of matching the level
       of performance for Tarong Energy employees.
       Specific procedures including contractor selection,
       induction and rigorous work procedure arrangements
       are in place; additional procedures are being
       considered. Links are also maintained with external
       groups, for example rural bush fire brigades.
Table 6: Summary of Key Interactions with Community Groups


 Stakeholder Group       Interactions

 Starfish Hill           • See page 18 Starfish Hill Consultation Program.
 Stakeholder relations

 Tarong Community        • See page 18 Tarong Community Stakeholder Meetings.
 Stakeholder Group       • Visit to Wivenhoe-Tarong pipeline and Wivenhoe Power Station organised for Stakeholder
                           Group in response to queries regarding fish translocation issues.

 Meandu/Barker’s         • Presentation to irrigators on future water release issues.
 Creek Water Advisory    • Continued to provide information on water releases.
 Committee               • Tarong Energy Environmental Officers attended AGM and received positive feedback from
                           Committee regarding interactions with Tarong Energy.

 Waterwatch Program      • Supported Waterwatch in South Burnett, sampling sites include Meandu and Barkers Creeks.

 Nanango High School     • Continued to support YAA (Young Achievement Australia). For 2001 Tarong supported
                           local company ‘NATAYA’ which won the Queensland Company of the Year award.
                           For 2002, Tarong Energy has donated more than $5,000 towards costs and four staff are
                           acting as mentors. Participants can publicise their company in Tarong Talk and Tarong
                           Energy Community Newsletter.
                         • Provided information and support for senior students geography field trip on issues affecting
                           catchment and water quality.

 Kingaroy State High     • Personnel from Tarong Energy attended careers information night.
 School                  • Sponsored visit to the Goodwill Games for 250 students and teachers from the High School as
                           well as the South Burnett Catholic College, Nanango and Chinchilla State High Schools, and
                           Yarraman State School.

 Local community –       • Open day: 4000 attendees, stalls for non-profit groups, (see page 18 for more information).
 Nanango and district    • Tarong Power Station’s Visitors’ Centre opens daily to cater for individuals and tour groups.
                           Free guided tours of the station are available.
                         • Donation of a truck to Kingaroy Salvation Army to enable the collection of donated items and
                           the delivery of goods to Community Red Shield Family stores.
                         • Donation to the Rural Fire Brigade Fund which enabled the purchase of fire fighting
                           equipment and materials that will assist improving community fire protection.
                         • Community News newsletter, mailed to 8,700 households quarterly.
                         • Typically 25 to 32% of Tarong North Power Station construction workforce are locals (see section 6.1)
                         • Burnett.net.au: Two senior Tarong Energy managers are directors of this internet service
                           provider which employs five staff and has 1100 users in the region.
                         • See Table 5 Tarong Learning Program and Wide Bay Group Training.

 Local Community –       • Volunteer Fire Brigade assisted Tarong Energy in controlled burns on Wivenhoe Power Station land.
 Wivenhoe/Fernvale       • Access to station fire hydrants provided to Rural Fire Brigade to improve access to fire
                           fighting water.
                                                                                                                                   17
                         • Meeting with local landholders to provide Emergency Action Plan information for the
                           Splityard Creek Dam.

 Local community –       • See page 18 Chinchilla Rail Link.
 Chinchilla rail link    • Sponsored visit to Goodwill Games for high school students.

 Wider Community         • CEO’s Challenge against domestic violence – time and goods donated by employees to a
                           womens’ refuge centre in the South Burnett.
                         • Environmental Performance Report and feedback.
                         • Website www.tarongenergy.com.au - A major upgrade was completed during the year and
                           information is updated regularly. Visitors on the site can subscribe to be notified of any
                           updates regarding projects, news or other information. Approximately 25,000 visits in 2001/02.
                         • 1-800 300 351 - Community information line for Tarong Power Station received seven requests
                           for information in 2001/02.
                         • Donation of bikes to Sunrise Rotary Club for making wheelchairs for disabled children in third
                           world countries.
                         • Donated to Save the Bilby Fund. This enabled the purchase of materials required to electrify a
                           fence, using solar power, to establish predator-free habitat at Currawinya National Park.
     Social and Community Responsibility                                      (Continued)



     Consultation Programs                                     group met four times with an average attendance
                                                               of 19 stakeholders and seven Tarong Energy
                                                               employees. The meetings generally take the form of
     Starfish Hill Consultation Program                        presentations by Tarong Energy personnel on regular
     In line with the responsible community partner            topics such as air emissions and discharges as well
     objective of our Environmental Policy, an extensive       as topics of current interest such as Tarong North
     consultation program was undertaken for the               Power Station construction and commissioning,
     Starfish Hill Wind Farm Project. This includes the        the Glen Wilga Coal Project and prevention of
     South Australian Government and its agencies,             noxious fish translocation. Local organisations can
     traditional owners, the local community and land          also take this opportunity to present to Tarong
     owners on the Fleurieu Peninsula, where the project       Energy issues of interest, including Waterwatch,
     is located. Some modifications were made to the           the South Burnett Tourism Strategy and
     alignment of the new transmission line in response        Burnett.net.au.
     to comments from the community and affected land
     owners, and some sections of the line will be
     underground to minimise visual impact in
     residential areas.
     A survey was undertaken to assess the effectiveness
     of the consultation and found that most people
     were supportive of the project and felt they had
     been dealt with fairly and openly. However some
     concerns were raised in relation to incomplete coverage
     by the consultation program.


     Chinchilla Rail Link
                                                                                        ,
                                                               The Hon. Dean Wells MP Minister for Environment with a bilby,
     To secure a long term economic and                        following the presentation of a cheque to the Save the Bilby Fund.
     environmentally acceptable coal supply, Tarong
     Energy is continuing to develop the Glen Wilga
     coal resource in the Surat Basin. Planning and
     approvals for the rail line from the Surat Basin to
     Tarong Power Station are continuing. Approval of
     the Impact Assessment Statement (from the origin
     at Brigalow to the 142 km point) was granted by
     the Coordinator General on 18 December 2001.
     An Environmental Impact Study on the remaining
     7 km of rail line including the unloading point is
     being completed.
     Consultation with the community and other
     stakeholders has continued to be a major focus
     in developing the rail link. Contact with the
     community was maintained with shop fronts in
     Chinchilla (full year) and Kumbia (part year) as
     well as direct communications with affected
18   landowners and Shire Councils.                            More than 4000 people attended the Tarong Open Day, which was
                                                               held at the Tarong Community Park on Saturday 8 September 2001.
     Another achievement of the past 12 months was
     the signing of an ILUA (Indigenous Land Use               Fish Management
     Agreement) by indigenous people with land
     interests along the rail route. The ILUA is currently     As a result of considerable interest and concern
     in the process of being certified by the Land             regarding the risk of translocation of noxious and
     Council. Tarong Energy also prepared a Draft              undesirable fish from Boondooma Dam and
     Regional Development Strategy to maximise the             Wivenhoe Dam into the Meandu-Barkers Creek
     potential for local contractors and workers to be         Catchment, the Tarong Community Stakeholder’s
     involved in construction and operation/maintenance        Group joined Tarong Energy personnel for a day
     of the project.                                           tour of the Wivenhoe-Tarong pipeline. The group
                                                               visited the pipeline intake, fish strainers and pump
                                                               station as well as participating in a guided tour of
     Tarong Community Stakeholder Meetings                     Wivenhoe Power Station. The stakeholder group
     The Tarong Community Stakeholder’s Group formed           now has first hand experience of Tarong Energy’s
     in 1995 and has met with personnel from the Tarong        approach to managing this risk. See page 24 for
     Power Station quarterly since then. In 2001/02, the       more information on prevention of fish translocation.
Industry Liaison
As part of its commitment to environmental best practice, Tarong Energy maintains contacts throughout the energy
industry. Table 7 summarises interactions with industry associations and peers within the energy industry.
Table 7: Examples of Energy Industry Interactions

 ESAA activities            • Participated on Eco-efficiency and NPI working groups.
                            • Provided input on a range of matters including Generator Efficiency Standards, Eco-efficiency
                              agreement, land management issues, NPI, emissions trading.
 CRC for Coal               • Active member on the CRC for Coal in Sustainable Development Board.
 Queensland Emissions       • Participated in a carbon trading simulation.
 Trading Forum              • Participated in inter-industry analysis of various trading rules and adoption implications.
 Other energy               • Formal and informal discussions on environmental issues with environmental managers from
 producers                    Queensland based generators.
 International              • Visits from senior officials from Siberia, Japan, China Power Companies and Energy
 counterparts                 Corporations to learn more about Australian Electricity Industry and discuss management of
                              power stations in a market environment.



Liaison with Government Agencies
Tarong Energy’s environmental policy requires Tarong Energy to achieve regulatory compliance as a
minimum and be proactive and diligent in its dealings with regulatory agencies. Table 8 outlines the
range of interactions with government agencies that Tarong Energy has maintained to assist it in
achieving its policy.
Table 8: Examples of Environment Related Interactions with Government Organisations in 2001/02

 SunWater                     Fish translocation issues on Boondooma to Tarong Pipeline.
                              Water allocations from Boondooma Dam.
 South East Queensland        Fish translocation issues on the Wivenhoe to Tarong Pipeline, weed control at Wivenhoe Power
 Water Corporation            Station and general pipeline issues.
 Environmental                Annual meeting to discuss environmental issues and compliance with Environmental Authority,
 Protection Agency            ongoing informal communications. Current issues include ash management, managing copper
                              levels in Meandu Creek, commissioning and operation licences for Tarong North Power Station.
 Department of Natural        Submission in relation to preparation of a Water Resource Operations Plan – Boondooma Dam.
 Resources and Mines
 Office of Energy -           Operation licensing and partnering for Tarong North Power Station.
 Treasury
 Shareholding Minister        Quarterly reports, which include environmental performance.
 Environment Australia        Negotiation of Generator Efficiency Standards and Greenhouse Challenge Agreements.
 Planning South Australia     Environmental approvals associated with the Starfish Hill Wind Farm Project.


                                                                                                                              19

Targets (2002/03)                                                   Social and Community
                                                                    • Update the existing sponsorship philosophy and
Workforce
                                                                      policy to identify a clear method for determining
• Obtain safety certification to Australian Standard
                                                                      a sponsorship and donations budget and
  AS 4801.
                                                                      priorities for the allocation of funds.
• Improve the closure rate of health and safety work
                                                                    • Formation of a Sponsorship Committee to
  orders to more than 90% within one month of initiation.
                                                                      oversee allocation of funding and support to
• Implement audits for major hazards, such as
                                                                      community and environmental projects.
  work at height, confined spaces and welding.
                                                                    • Finalise a Corporate Stakeholder Strategy
• Maintain employee participation rates in health
                                                                      focused on managing, integrating and improving
  and well-being programs at greater than 66% of
                                                                      external relationships associated with
  eligible employees across all programs.
                                                                      environmental activities across the Corporation.
• Work with contractors to develop a plan to
  improve safety performance of contractors.
• Report on the results from the employee survey
  on workplace satisfaction.
     Environmental Performance


     Addressing and improving the environmental                           Air
     performance of Tarong Energy’s operations
     involves all facets of environmental management,                     Tarong Power Station is the main source of air
     many of which have been discussed in previous                        emissions from the Corporation’s operations, with
     sections. This section provides a summary of                         emissions of nitrogen oxides (NOx), sulphur dioxide
     environmental targets and performance in the                         (SO2), carbon dioxide (CO2e) and particulates all
     areas of:                                                            resulting from the combustion of coal.
                                                                          Tarong Power Station is operated to maintain
     •   Air (including Greenhouse related performance)                   emissions within standards set by the
     •   Water                                                            Environmental Protection Agency and is
     •   Resource Use                                                     monitored to maintain the quality of the airshed
     •   Land                                                             around the power station. More information on
     •   Incidents and Complaints                                         emissions is available at www.tarongenergy.com.au.




     Tarong Power Station and Tarong North Power Station Project


     Key Performance Indicators
                                                                                                  2000/01               2001/02
      Tarong Power Station carbon intensity (kg CO2e per MWh sent out)                            916                   915
                                                                                                          (1)
      Thermal Efficiency (units sent out)                                                         35.2%                 35.2%
      Emissions of particulates per MWh of energy sent out (kg/MWh)                               0.8                   0.66
      Emissions of NOx per MWh of energy sent out (kg/MWh)                                        4.2                   3.99
      Emissions of SO2 per MWh of energy sent out (kg/MWh)                                        3.1                   2.56

     (1) 2000 calendar year



     Outcomes (Targets 2001/02)
      Target                                                       Outcome                                                  Status
20
      • Install continuous monitoring on all stacks.               Installed and operational on 1 out of 4 units.           4
      • Investigate methods for reporting Corporate                Corporate carbon intensity to be reported as a KPI       4
        carbon intensity.                                          for 2002/03.
      • Implement projects to achieve a total reduction in         Achieved savings of 48 000t due to a variety             5
        CO2e emissions of at least 28 000t in 2001 when            of measures
        compared to business as usual.
      • Finalise the new Greenhouse Challenge Agreement            Greenhouse Challenge Agreement finalised with AGO        4/5
        and Generator Efficiency Agreement.                        in November 2001, awaiting formal sign-off from
                                                                   Federal Minister.
                                                                   Generator Efficiency Agreement signed.
      • Identify projects that may contribute to improved          Ongoing, documented in Greenhouse Challenge              5
        generation efficiency at Tarong Power Station.             Agreement and Generator Efficiency Standards.
      • Participate in Queensland Emission Trading Forum           Internal simulation not to be undertaken at this time.   5
        (QETF) activities and undertake an internal                See Table 7.
        emissions trading simulation.
     5=Achieved; 4=Underway; 3=Planned, approved and resourced, 2=Preliminary planning; 1=No action
Protecting Air Quality                                                            Tarong Energy installed an automatic weather
                                                                                  station on the Tarong Power Station site.
Emissions Monitoring                                                              The weather station will provide continuous data
In 2001/02, Tarong Power Station continued to                                     on wind speed, temperature and pressure, all of
achieve full regulatory compliance for air emissions.                             which can affect concentrations of air emissions
The most recent report for the National Pollutant                                 at ground level. This will allow better modelling
Inventory is available at www.tarongenergy.com.au.                                of ground level concentrations of air emissions.


Figure 7 shows air emissions for 1996 to 2002.                                    Carbon Intensity and Greenhouse Gases
The NOx and SO2 emissions are consistent with the                                 Tarong Energy’s strategy to minimise carbon
previous year’s emissions. SO2 emissions have                                     intensity is based on operating its existing
slightly decreased as a direct result of the lower                                facilities as efficiently as possible while ensuring
average sulphur content of the coal burnt.                                        future projects adopt the latest economically
Particulate emissions have decreased as a result of                               feasible technologies in fossil fuel and renewable
a range of boiler efficiency improvements including                               energy generation (see also sustainability section).
reduced air heater leakage and lowering of furnace
back-end temperatures.
                                                                                  The Greenhouse Challenge
                  5
                                                                                  Tarong Energy’s first Greenhouse Challenge
                  4.5
                                                                                  Agreement expired in December 2000.
                  4                                                               Since then, Tarong Energy has worked with the
                  3.5                                                             Australian Greenhouse Office to develop a new
kg/MWh sent out




                  3                                                               agreement for the period 2001 to 2005.
                  2.5
                                                                                  Tarong Energy has continued to undertake actions
                  2
                                                                                  to reduce greenhouse gas emissions with savings
                  1.5
                                                                                  of 48,000 tonnes of CO2e in 2001/02.
                  1

                  .5                                                              Projects undertaken in 2000/01 to reduce CO2e
                  0                                                               emissions are shown in Table 9.
                        1996




                                1997




                                          1998




                                                      1999




                                                             2000




                                                                    2001




                                                                           2002




                        NOX    SO2     Particulates


Figure 7: Annual Air Emissions 1996-2002


Table 9: Emission Improvement Projects and Associated Reductions

                  Project                                                                       Estimated CO2e        Anticipated CO2e
                                                                                                Savings(3)            Savings(3)
                                                                                                in 2001/02            in 2002/03
                  Titanium water coolers and condensers installed on Unit 2                     13 000 t              -
                  Titanium water coolers and condensers installed on Unit 3                     1 000 t               8 000 t
                  Replaced economiser on Unit 2                                                 18 000 t              -
                  Replaced economiser on Unit 4 (1)                                             -                     -                  21
                  Economiser upgrade on Unit 3                                                  -                     4 000 t
                  Fan power reduction on Unit 2                                                 10 000 t              -
                  Fan power reduction on Unit 4                                                 5 000 t               -
                  Fan power reduction on Unit 3                                                 1 000 t               -
                  Install additional oxygen probes to allow better control over
                  combustion performance (2)                                                    -                     -
                  Total                                                                         48 000 t              12 000 t

(1) Savings countered by deterioration in air heater performance.
(2) Technical difficulties with the operation, work still under way.
(3) Savings are only counted in the year in which the initiative is implemented. Reductions are measured against emissions from the
    previous year.
     Environmental Performance                                                             (Continued)



     Air (Continued)                                                                                                        960



     Carbon Dioxide Emissions                                                                                               950


     By maintaining and operating Tarong Power                                                                              940




                                                                                               (kg CO2e per MWh sent out)
     Station as efficiently as possible, Tarong Energy
     maximises power generation while minimising CO2e




                                                                                                    Carbon Intensity
                                                                                                                            930
                                                                                                                                                                             1995/96
     emissions. Figure 8 shows Tarong Power Station’s                                                                                                                        1996/97
                                                                                                                            920
     emissions compared to other black coal fired                                                                                                                            1997/98
     generators in Australia. Based on 1999 National                                                                        910                                              1998/99
     Greenhouse Gas Inventory data, Tarong Power                                                                                                                             1999/00
     Station is performing slightly more efficiently than                                                                   900                                              2000/01
     average with respect to greenhouse gas emissions.                                                                                                                       2001/02
                                                                                                                            890
                                                                                                                                                                             GES
                                92.5                                                                                                                                         Performance
                                                                                                                                                                             Band
                                 92                                                                                         880
                                91.5                                                                                          90%   92%   94%        96%        98%   100%
     Kgof CO2e per PJ of Fuel




                                 91
                                                                                                                                                Output Factor

                                90.5                                                           Figure 9: Tarong Power Station performance against the
                                 90                                                            ‘Generator Efficiency Standard’ (GES) Performance Band
                                89.5

                                 89

                                88.5

                                 88

                                87.5
                                          1999/2000                2000/2001   2001/2002
                                       Tarong    National Average (1999)


     Figure 8: CO2e emissions per unit of fuel consumed
     (Note: national average based on 1999 National Greenhouse
     Inventory for black coal fired electricity generation)

     While CO2e emissions per unit of fuel consumed
     decreased slightly, total CO2e emissions from Tarong
     Power Station increased from 9,436 kilotonnes CO2e
     in 2000/01 to 9,489 kilotonnes CO2e in 2001/02.
     This was due to increased electricity production for                                      An automatic weather system provides valuable data for assessing
                                                                                               our emissions.
     the year.

     Generation Efficiency
     Tarong Power Station continued to be operated to
     high standards of efficiency, given its design and
     coal source, with thermal efficiency of the plant
     maintained at 35.2% in 2001/02 (compared to
     35.0% in 1995)(based on units sent out). This is
     contrary to the typical trend for thermal efficiency
     to decline as power stations age.
     Tarong Energy signed the GES Deed of Agreement
22   with the Australian Greenhouse Office in November
     2001. Figure 9 shows the GES performance band,
     specific to Tarong Power Station and the power
     station’s performance against that band since
     1995/96. Since the GES benchmarks became                                                  Greenfleet
     applicable in November 2001, performance has
     been well within the required performance band.                                           Tarong Energy has continued its membership with
                                                                                               Greenfleet, which started several years ago.
     As shown in Figure 9, Tarong Power Station’s
                                                                                               In 2001, 782 trees were planted to sequester the
     carbon intensity reduced slightly from 2000/01.
     This result was better than the target intensity                                          estimated 199 tonnes of CO2 produced by the
     for the year and within the Generator Efficiency                                          Corporation’s nominated corporate fleet of 46
     Standard (GES) performance band for the plant.                                            vehicles. More information on this program is
     Plant maintenance undertaken during the year                                              found at http://www.greenfleet.com.au/.
     limited any further change.
     The station’s performance in 1999/2000 and
     2000/01 was also within the band. These results
     reflect improvements in plant performance and
     coal quality in the past three years.
Water
The primary use of water by the Corporation occurs at                     the cooling water is then lost through evaporation,
Tarong Power Station. Most of Tarong Power Station’s                      and fresh water needs to be added to maintain
water is sourced from Boondooma Dam, although                             optimal operating conditions. Some of the cooling
when Tarong North Power Station starts operating,                         tower blowdown water is discharged from the site
water will also be pumped from Lake Wivenhoe.                             into Meandu Creek. This water contains salt and
A key issue in the past year has been managing                            trace amounts of copper. This discharge is
the risk of translocation of noxious and undesirable                      authorised by a Government issued Environmental
fish species from one catchment into another via                          Authority and Tarong Energy operates within
these pipelines.                                                          authorised parameters for this discharge. Tarong
The main use of water at Tarong Power Station is                          Energy also continues to recognise the importance
for cooling. During this process, heat is transferred                     of understanding impacts on the downstream
from the boiler steam to the cooling water. Most of                       environment and on agricultural land where this
                                                                          water is used for irrigation.




Richard Trevena, Technical        Fish surveying in Tarong Power Station water supply dam.                      Richard Trevena and Jim
Officer, testing filters on the                                                                                 Sanders checking water which
Wivenhoe to Tarong pipeline.                                                                                    has passed through pipeline
                                                                                                                filters at Lake Wivenhoe.

Key Performance Indicators
                                                                                             2000/01                 2001/02
  Average copper levels in water discharged to Meandu Creek (µg/L)                           26                      24
  Average salt levels in water discharged to Meandu Creek (mg/L)                             910                     946
  Water consumed from Boondooma Dam at Tarong Power Station (ML) (% of                       24,340                  25,229
    total water use)                                                                         (94%)                   (98%)
  Quantity of water recycled or reused at Tarong Power Station (ML) (% of total              1650                    470
    water use) (1)                                                                           (~6%)                   (~2%)
  Quantity of water per MWh at Tarong Power Station (L/MWh)                                  2 354                   2 432
  Number of species of noxious/undesirable fish/eggs identified in                           Not assessed            0
  Tarong/Tarong North water systems

(1) Note that this does not include recirculation of water through the cooling water or steam cycle systems. Water is recirculated through
    the cooling water system approximately 6 times before discharge (1,239,000 ML/annum) and approximately 33 times in the steam cycle
    (8,714 ML/annum).


Outcomes (Targets 2001/02)
  Target                                                Outcome                                                                    Status      23
  Implement source controls to reduce coal              Some minor source controls for fuel spills implemented, major              3
  fines in stormwater and risk of fuel spills           implementation works postponed to 2002/03. A colour coded
  leaving site.                                         labelling system of site drains has been introduced.
  Install titanium condensers on Unit 3.                Completed in May 2002.                                                     5
  Assess water quality impacts of diverting             Automated sampling has been carried out on inflows to                      2
  cooling tower blowdown around                         stormwater dam, water quality is acceptable for reuse as
  stormwater pond.                                      cooling water. Final assessment will be delayed until TNPS is
                                                        on-line. Feasibility study scheduled for 2002/03.
  Prepare detailed design of proposed                   Design of significant stormwater system improvements                       5
  stormwater management options.                        completed. Next step is to gain approvals. Construction
                                                        expected in 2003/04.
  Continue to work with SunWater and other              Tarong Energy continued to participate in stakeholder                      4
  stakeholders to prevent spread of Tilapia             discussions and decision made to install filters on the
  from Boondooma Dam.                                   Boondooma - Tarong pipeline.
  Install 200µm filters on Wivenhoe to                  Installation complete, filters are operational and undergoing              5
  Tarong pipeline.                                      final testing to ensure that there are no defects.

5=Achieved; 4=Underway; 3=Planned, approved and resourced; 2=Preliminary planning; 1=No action
     Environmental Performance                                       (Continued)



     Water (Continued)                                                      Case Study:
                                                                            Copper levels in Meandu Creek
     Case Study:
     Translocation of Fish                                                  As reported in 2000/01, Tarong Energy has been
                                                                            monitoring the aquatic ecosystem of Meandu Creek
     The risk of translocation of noxious and                               since 1997. As part of a voluntary agreement
     undesirable fish species (for example Tilapia and                      between Tarong Energy and the Queensland
     Banded Grunter) from Boondooma Dam and Lake                            Environmental Protection Agency to reduce copper
     Wivenhoe, via pipelines to the Tarong Power                            levels in discharges to the creek, Tarong Energy
     Station and from there to the Meandu-Barkers                           has replaced brass condensers with titanium
     Creek Catchment, continues to require careful                          condensers on two of the four electricity
     monitoring and management. Tarong Energy has                           generation units, with the first installed in May
     already installed 500 and 200µm filters on the                         2001 and the second in May 2002.
     Wivenhoe-Tarong pipeline to filter out fish eggs
     and larvae.                                                            Copper concentrations in discharges indicate that
                                                                            copper levels have decreased since the condensers
     Managing this issue for the Boondooma Pipeline                         were replaced (refer to supporting data page 33).
     has been more complex because of the range of
     stakeholders involved and the arrangements with                        Response of the Meandu Creek ecosystem to a
     SunWater regarding ownership and operation of                          reduction in copper levels will continue to be
                                                                            assessed in future years.




     Dwain Freshwater testing the     Richard Trevena at Caboonbah               Dwain Freshwater taking a water sample from a bore hole at
     quality of water releases from   pump station testing water that has        Tarong Power Station to check groundwater quality.
     Tarong Power Station.            passed through the Tarong to
                                      Wivenhoe pipeline.



24   the pipeline (the pipeline is owned by SunWater).                      Case Study:
     Tarong Energy has taken the initiative in providing
                                                                            Water Balance Model
     the funding for SunWater to install similar filters
     in the Boondooma pipeline.                                             Tarong Energy has developed a water balance
                                                                            model for Tarong Power Station and the new
     In addition, Tarong Power Station has maintained
                                                                            Tarong North Power Station. The water balance
     a risk management strategy that includes:
                                                                            model has been an excellent tool for increasing
     • operation and maintenance of 500 and 200µm
                                                                            understanding of water management issues on the
       filters on the Wivenhoe pipeline,
                                                                            site. This more accurate analysis of current water
     • monitoring of water storages receiving water
                                                                            use and flows around the site, allows planning for
       from Boondooma and Wivenhoe Dams,
                                                                            future water use, including potential reductions in
     • procedures for maintenance and operation of
                                                                            water consumption. Given the increasing pressure
       the pipelines; and
                                                                            on the region’s water resources, the water balance
     • remedial action in the event that
                                                                            model will allow tighter management of water
       noxious/undesirable fish species are identified
                                                                            resources at Tarong Energy sites and more
       in the Meandu Creek Dam or other storages
                                                                            accurate planning for sustainable water use.
       operated by Tarong Power Station.
Resource Use and Waste
Key Performance Indicators
                                                                                                 2000/01                2001/02
  Percentage of ash sold                                                                         18%                    18%
  Total cenosphere sales (tonnes)                                                                27 000                 9 169
  Expenditure on waste management                                                                $4.48 Million          $3.87 Million
  Coal used (tonnes per MWh generated) (1)                                                       0.46                   0.46
(1) Coal fired assets only

Tarong Energy’s vision is to move toward being an integrated energy company. The Corporation’s approach to
sustainable resource use is outlined on page 5.




Aerial view of Tarong Power Station and the Tarong North Power Station Project showing the ash dam in the foreground.



Outcomes (Targets 2001/02)
  Target                                             Outcome                                                                      Status
  Conduct a waste review for Tarong Power            Completed for Wivenhoe Power Station.                                        3
  Station and Wivenhoe Power Station.                Not complete for Tarong Power Station. Proposal to construct
                                                     a recycling facility in 2002/03 will allow better waste
                                                     management control.                                                                   25
  Prepare a Waste Management handbook                Completed and distributed.                                                   5
  for Wivenhoe Power Station.
  Develop an Ash Dam Management Plan                 Preliminary ash deposition plan formulated. Negotiations with                2
  (prior to Tarong North Power Station               regulatory authorities has commenced. Options for placement of
  commencing full operation).                        ash that cannot be recycled continue to be explored.
  Continue to identify opportunities for             Tarong Power Station now reusing 20L plastic containers and 44               4
  waste exchange or use of renewable                 gallon drums are being returned to waste oil recyclers.
  materials within the organisation.                 Currently evaluating further opportunities associated with
                                                     recycling of ash.
  Develop resource tracking systems for              Coal stockpile and quality data being reviewed.                              2
  key resources.                                     Water balance model completed, allows better tracking of water
                                                     consumption and discharge.
                                                     Other resource tracking not yet implemented.
  Complete detailed design of the dense              Preliminary design complete.                                                 4
  phase ash system.

5=Achieved; 4=Underway; 3=Planned, approved and resourced; 2=Preliminary planning; 1=No action
     Environmental Performance                                        (Continued)


                                                                                                                          p
     Resource Use and Waste (Continued)                                                 1,800,000


                                                                                        1,600,000

     Dense Phase Ash Management
                                                                                        1,400,000

     Ash is by far the greatest quantity of waste that
                                                                                        1,200,000
     Tarong Energy produces from its coal fired power
     station at Tarong. Following on from work                                          1,000,000

     undertaken in 2000/01, Tarong Energy has
                                                                                         800,000
     continued to progress towards a dense phase ash




                                                                               Tonnes
     system. In 2001/02, a detailed design was                                           600,000


     completed and successful trials undertaken. The                                     400,000

     main benefit of the dense phase ash system is to
                                                                                         200,000
     prolong the life of the existing ash dam, thus
     avoiding the cost and environmental impacts                                               0




                                                                                                    1996



                                                                                                               1997



                                                                                                                          1998



                                                                                                                                        1999



                                                                                                                                                   1999/00



                                                                                                                                                                     2000/01



                                                                                                                                                                                2001/02
     associated with developing a new dam. The
     proposed system will also still allow for the                                                  Total Ash Generated          Total Ash Sales             Total Cenosphere Sales
     separation of cenospheres from the ash mixture
     (see Figure 10) and its subsequent use in building                         Figure 10: Ash reuse and cenosphere sales
     products. In 2002/03, tenders will be sought and
     the plant constructed.




26
     Pozzolanic Industries purchases Tarong Power Station by-products for use in cement and other industries.


     Ash Reuse
     Tarong Energy continues to pursue options for                              Trials with ash as a soil additive have also been
     reuse of ash (also see Table 4). Ash and cenosphere                        undertaken by one of the companies that reuses ash
     reuse since 1996 is shown in Figure 10. Options                            from Tarong Power Station, although very dry weather
     for reuse of ash include a range of building materials,                    in the past 12 months has made it difficult to
                                                                                quantitatively analyse their success. However bottom
     road base, lightweight fill and agricultural applications.
                                                                                ash appears to have benefits as an aerator in clay soils
     In 2001/02, Tarong Energy provided ash for
                                                                                and to assist with moisture retention in sandy soils.
     manufacture of concrete blocks used to construct
     the Booie Range Distillery. Incorporating the ash
     into the concrete has led to blocks that were lighter
     and more robust than conventional concrete
     blocks. Tarong Energy has sought proposals from
     prospective businesses based on reuse of ash and is
     currently evaluating these proposals.
Land
Tarong Energy owns approximately 2550 ha of land                        easement to focus management of these
as part of its operations as well as renting offices                    operational issues. These issues are also evaluated
in Brisbane and Adelaide. Land management                               for new projects, such as Starfish Hill Wind Farm,
issues being addressed include flora, fauna and                         so that potential impacts on land resources are
biodiversity, site contamination, rehabilitation, and                   identified and managed. Land Management Plans
weed management. Tarong Energy has formulated                           for Tarong Power Station and Starfish Hill Wind
Land Management Plans for the Wivenhoe Power                            Farm are expected to be progressed in 2002/03.
Station and the Tarong to Wivenhoe pipeline




Key Performance Indicators                                                               2001         2002         2002          2002
                                                                                        Tarong       Tarong      Wivenhoe     Wivenhoe
                                                                                         Power        Power        Power      to Tarong
                                                                                        Station      Station      Station      pipeline
  Number of incidents leading to potentially contaminated sites                            0            0            0                0
  Land Management Plan completed and being implemented                                                  No          Yes           Yes
  Sites surveyed to identify significant species and ecosystems                                        No(1)        Yes           Yes
  Significant species and ecosystems identified on the site managed for                  Not           No(1)        Yes           Yes
  conservation values                                                                  Assessed
  Sites surveyed for noxious and undesirable weed infestation                                           No          Yes           Yes
  Weeds managed to protect conservation and natural resource values                                     No          Yes           Yes
  on sites and minimise impacts on adjacent lands

(1) A small area of the Tarong Power Station site has been surveyed and a Vegetation Management Plan prepared.




Harvey Cabrera, Environment Manager, views hoop pine plantation joint venture.       Grevillea species near Wivenhoe Power Station.
                                                                                                                                           27
Outcomes (Targets 2001/02)
 Target                                             Outcome                                                                       Status
 Commence development of Land                       Development has commenced. A new system for internal approval                 4
 Management Plan for Tarong Power Station           of land clearing and disturbance activities has been developed.
                                                    A scope of work and cost estimate for preparation of a site wide
                                                    Land Management Plan has been developed.
 Further develop Tarong and Wivenhoe site           Cost estimates prepared for rehabilitation of Tarong Power Station            4
 closure and rehabilitation strategy                so that provisions can be made in future budgets. Provisions for
                                                    Wivenhoe Power Station not required as yet.
 Develop management plan for vegetation             Completed. Report due to be released early in 2002/03. Issues for             5
 along Wivenhoe to Tarong pipeline easement         management include erosion and regrowth of weeds along the
                                                    pipeline and access tracks.
 Construct new sandblasting area and                Completed. Soil tests identified a small area of soil contaminated            5
 remediate existing facility at Tarong              with metals which has been remediated.
 Power Station

5=Achieved; 4=Underway; 3=Planned approved and resourced; 2=Preliminary planning; 1=No action
     Environmental Performance                                 (Continued)



     Land (Continued)

     Case Study:                                                   original cover of this vegetation type remains (see
     Land Management Plan Proving Useful at                        http://www.nrm.qld.gov.au/vegetation/bioregions.html
                                                                   for more information on regional ecosystem
     Wivenhoe
                                                                   classification).
     In conjunction with neighbours and the local
                                                                   Potential impacts on biodiversity will be minimised by:
     community, Wivenhoe Power Station personnel are
                                                                   • Minimising and closely controlling the area
     implementing the Land Management Plan which
                                                                     of clearing;
     was developed in 2000/01. Weed control has been
                                                                   • Preventing erosion; and
     reviewed and a revamped, performance-based weed
                                                                   • Actively managing areas of the Eucalyptus crebra
     control contract awarded. Regular weed
                                                                     woodland not directly affected by the project.
     inspections are being conducted by Tarong Energy
     and trials into controls of some more difficult
     weeds are under way.                                          Case Study:
     The Rural Fire Brigade and local land owners                  Rehabilitation Plan
     assisted Wivenhoe Power Station employees in
                                                                   Although there is no formal requirement or need to
     conducting controlled burns of some areas in
                                                                   commence rehabilitation of the existing Tarong and
     accordance with the Land Management Plan.
                                                                   Wivenhoe Power Stations, Tarong Energy considers
     The liaison with the Rural Fire Brigade led to
                                                                   that, as a responsible corporate citizen, it should
     Wivenhoe Power Station allowing the Fire Brigade
                                                                   plan for the long-term future of the sites.
     access to its fire hydrants, cutting 40 km off the
                                                                   Tarong Power Station has a design life of 40 years
     trip for refilling fire tankers attending fires near
     the power station.




28


     Wivenhoe Dam and land around the Wivenhoe Power Station

     Case Study:                                                   and therefore it is too early to evaluate likely future
     Rare Plant at Tarong Power Station                            uses of the site. Tarong Energy has identified the
                                                                   need for the site to be left in a condition which is
     As part of the Dense Phase Ash project, a new                 safe, non-polluting and self-sustaining. A provision
     pipeline is to be installed between Tarong Power              of some $60 million is planned to be progressively
     Station and the ash dam. Prior to onground                    established for decommissioning and rehabilitation
     works commencing, a biological survey was                     of the site.
     undertaken and a small patch of Ziera sp was
     identified. This shrub is listed as ‘Vulnerable’              Given that the design life expectancy of Wivenhoe
     under Commonwealth and Queensland legislation.                Power Station is 100 years, it has been determined
     The pipeline placement is being designed to avoid             that development of a closure plan will not be
     disturbing the Ziera sp but will require some clearing        required at this time. The Corporation plans to
     of Eucalyptus crebra woodland. This woodland is               finalise its approach to site decommissioning
     classified as ‘Of Concern’ as less than 30% of the            through development of a formal policy in 2002/03.
Incidents and Complaints
Key Performance Indicators
                                                                                            2000/01               2001/02
 Number   of   environmental incidents (total)                                              24                    22
 Number   of   major or catastrophic environmental incidents                                0                     0
 Number   of   environmental incidents satisfactorily resolved                              100%                  100%
 Number   of   environmental complaints                                                     1                     2
 Number   of   environmental complaints resolved                                            1                     2



Outcomes (Targets 2001/02)
 Target                                          Outcome                                                                  Status
 Repair and upgrade bulk acid/caustic            Incomplete. Design specification and cost estimate prepared,             3
 storage facilities at Tarong Power Station      installation delayed until 2002/03 due to cost being higher than
 to meet Australian Standards.                   anticipated. Testing of soils underneath the site indicates that soil
                                                 pH is within the expected range.
 Continue to minimise risk of spill at           Existing hydrocarbon monitoring and management systems                   4
 Wivenhoe Power Station through strategic        maintained. Oil retention boom was replaced in 2001/02.
 alliances, operating procedures and             Outstanding actions identified in a Technical Oil Systems Audit
 equipment replacement.                          (1998) have been highlighted for review in the forthcoming year.
                                                 Hydrocarbon management is part of the recently certified EMS for
                                                 Wivenhoe Power Station.
 Conduct emergency response scenarios at         Emergency response simulation on an oil spill conducted at Tarong        4
 Wivenhoe and Tarong Power Stations.             Power Station in December 2001. An oil spill response simulation
                                                 at Wivenhoe has been delayed until review of oil spill response
                                                 equipment and personnel training needs has been completed.

5=Achieved; 4=Underway; 3=Planned, approved and resourced; 2=Preliminary planning; 1=No action



Summary of Environmental Incidents                                   incidents led to off-site soil or water contamination,
                                                                     and no adverse environmental effects were
in 2001/02
                                                                     identified. One incident involved the release of a
Tarong Energy has adopted the Australian risk                        small quantity of hydraulic oil into the ash dam.
management standard and reports environmental                        The remaining incidents involved minor on-site
incidents on a scale of 1 to 5. Category 1                           releases of contaminated water. Corrective actions
environmental incidents are “catastrophic”,                          were established for each of these minor incidents
Category 2 incidents are “major” and Category 3                      and these actions are being managed by the
incidents “significant”. By contrast, Category 4                     Corporation to ensure appropriate measures are
indicates only minor property and environmental                      being implemented.
impact and Category 5 incidents have
                                                                     The incident of a discharge of high pH water from
negligible impact.
                                                                     the Wivenhoe to Tarong pipeline to a local creek
In 2001/02, all environmental incidents were                         reported in 2000/01 has continued to be
Category 4 (minor) or 5 (insignificant) (see Table 10).              monitored. Contact has been maintained with                   29
Most of these incidents were spills of small                         affected residents and biological monitoring of
quantities of oil or chemicals within the plant                      the creek has shown no ongoing adverse effects.
areas. These were contained and cleaned up                           Procedures have been developed to ensure that
without any on-site contamination or risk of                         such an event does not reoccur.
migration of contaminants off-site. None of the

Table 10: Incident Summary
 Incident Category     Examples                                          Tarong       Tarong        Wivenhoe    Corporation
                                                                      Power Station North Project Power Station    Total
 Insignificant         Small, contained spill or emission.                  12              2             0              14
 (Category 5)
 Minor                 Small, uncontained spill or on-site release           6              2             0              8
 (Category 4)          to environment, technical non-compliance
                       with system procedures.
 All categories                                                             18              4             0              22
 (1 to 5)
     Environmental Performance                                            (Continued)



     Incidents and Complaints (Continued)
     Complaint regarding air emissions                                            Case Study:
     Two complaints were received from a nearby                                   Emergency response simulation at TPS
     resident who stated that odours had been apparent                            An environmental incident response simulation was
     from the power station and these were thought to                             conducted at Tarong Power Station in December
     have caused respiratory problems. The resident                               2001. The training simulation involved a significant
     also noted a white powdery dust on the roof.                                 simulated spill from an oil pipeline which required a
     Tarong Energy personnel visited the resident to                              response from the emergency team. The team was
     discuss the issues in more detail and launched an                            able to utilise on-site containment equipment to
     investigation which included dust sampling and                               contain the simulated spill. The new colour-coded
     modelling concentrations of air pollutants based                             drain labelling system allowed the team to identify
     on weather conditions and power station emissions                            components of the site drainage system at risk and
     around the time of the complaint. While the                                  act to protect these to prevent off-site migration
     investigations could not rule out the possibility                            of the simulated spill. The team could also
     of there being some slight odour from the power                              identify off-site locations at risk from the
     station, the investigations did not show air                                 simulated spill and set up monitoring at these
     pollutants in concentrations likely to cause                                 locations. The environmental team was then
     respiratory problems or other health issues.                                 called in to provide advice on the clean up and
     These results were discussed with the resident and                           disposal options. The simulation raised several
     Tarong Energy continues to monitor this situation.                           issues in relation to emergency responses, and
     These complaints, and the means by which they                                appropriate modifications were made. The
     were resolved, were reported to the Queensland EPA.                          emergency response team is now confident that
                                                                                  it can respond appropriately to a spill incident.




     Paul Veivers, Environment Officer, inspects the growth of hoop pine in the DPI joint venture forestry plantation.


     Targets 2002/03
30   Air                                                                          Resources and Waste
     • Meet the Greenhouse Challenge and Generator                                • Continue to identify alternative uses for ash and
       Efficiency Agreement requirements.                                           support development of alternative ash markets.
     • Improve understanding of impact of Tarong and                              • Formalise the Corporate recycling and waste
       Tarong North Power Stations on regional airshed.                             management strategy.
                                                                                  • Construct Materials Recycling Facility at Tarong
     Water
                                                                                    Power Station.
     • Review the copper monitoring program and the
                                                                                  • Construct and implement dense phase ash system.
       assessment of impacts on aquatic ecosystems in
       Meandu Creek.                                                              Land
     • Negotiate a voluntary improvement program                                  • Complete Land Management Plan for
       with EPA regarding impacts of discharges on                                  Tarong Power Station and the Starfish Hill
       aquatic ecosystems in Meandu Creek.                                          Wind Farm site.
     • Support SunWater to ensure that filters are                                • Development of a long term power station
       installed and commissioned on Boondooma                                      closure and rehabilitation policy for the
       to Tarong pipeline.                                                          Corporation.
     • Increase recycling of stormwater at
                                                                                  Incidents
       Tarong and Tarong North Power Stations.
                                                                                  • Conduct training and emergency simulations at
                                                                                    Wivenhoe Power Station.
                  Independent Verification Statement to
                       Tarong Energy Management

Scope
Bureau Veritas was engaged to verify the Tarong Energy Environmental Performance Report (EPR)
for the year ended 30 June 2002.
The Corporation is responsible for the details contained in the EPR. This includes performance
information for Tarong and Wivenhoe Power Stations, Terra Gas Trader and Brisbane Office, and
activities undertaken at Glen Wilga Coal reserve, Starfish Hill Wind Farm and Tarong North Power
Station (under construction).
Our verification consisted of:
• Review and validation of information used to compile the EPR, and examination of the accuracy of
  corresponding statements included in the EPR, including those addressing the ESAA’s Code for
  Environmental Practice. This involved assessing raw data and formula used, and determining the
  reliability of electronic systems to collate and present information.
• Examining the extent, impartiality and quality of the information reported in the EPR.
This process included visits to the Tarong and Wivenhoe Power Stations, and Brisbane Office, and
discussions with relevant Tarong Energy personnel.


Highlights
Bureau Veritas commends the Corporation’s on-going improvement in preparation of the EPR.
This year the report has broached new areas, with disclosure of economic impacts and expenditure,
and expanded upon topics previously reported, such as social impact, following the Sustainability
Reporting guidelines developed by the Global Reporting Initiative.
Greater attention has been provided during the year to employee development and welfare through
increased training, the implementation of new Enterprise Bargaining Agreements, the Learning
Strategy, involvement in Health Risk and Life Style Assessments, and development of the Employee
Relations Strategy.
Significant steps have been made to improving health, safety and environmental performance
through review of management system documents, and encouraging ownership of these system
and processes by all employees.


Conclusion
The verification audit has confirmed that the information and facts presented, and summaries         31
provided in the EPR are complete and accurate. The EPR portrays a realistic perspective of Tarong
Energy’s management and performance of environmental, health and safety, economic and social
issues. The targets and indicators proposed for the forthcoming year can only improve on the EPR
reporting function.

Bureau Veritas




Stephen Rogers
QSA Senior Environmental Auditor
(No. 06548)
     Glossary


     Capacity factor The proportion of electricity          EPR Environmental Performance Report
     generated compared with the possible generation        ESAA Electricity Supply Association of Australia
     for the same period.
                                                            FTE Full Time Equivalent
     Carbon intensity Emissions of CO2 in kg per MWh
                                                            GCA Greenhouse Challenge Agreement
     of energy sent out. Carbon intensity relates to the
     proportion of carbon in a fuel source and the          GES Generator Efficiency Standards
     efficiency of energy conversion.                       GRI Global Reporting Initiative
     Cenospheres Microscopic hollow spherical particles     GRP Gross Regional Product
     that are a by-product of the combustion of coal.       HSE Health Safety and Environment
     Condenser Heat exchanger in a power station,           ILUA Indigenous Land Use Agreement
     which cools spent steam into water for
                                                            ISO 14001 International Standards Organisation -
     recirculation to the boiler.
                                                              Environmental Management Systems
     Cooling Tower Blowdown Cooling water that is
                                                            KPIs Key performance indicators
     discharged from the cooling towers.
                                                            LTI Lost time injury
     Emissions Substances (gases or liquids) released
     into the environment.                                  LTIFR Lost Time Injury Frequency Rate
     Environmental Authority An authority issued by         NEM National Electricity Market
     the Queensland Environmental Protection Agency,        NEMMCO National Electricity Market
     authorising an organisation to carry out an activity     Management Company
     such as power generation, that might lead to           NO Nitrogen oxide
     discharges to the receiving environment. Often
     referred to as a licence.                              NOx Oxides of nitrogen
     Fossil fuels Coal, oil, and gas. Fuels that are        NPI National Pollutant Inventory
     derived from organic matter from past geologic         QA Quality Assurance
     ages and that are now in a combustible form.           QETF Queensland Emissions Trading Forum
     MWh (sent out) Electricity actually sent out of the    RECs Renewable Energy Certificates
     power station, that is, made available for             SO2 Sulphur dioxide
     distribution.
                                                            TDS Total dissolved solids
     Particulates Very small particles of dust suspended
     in the air, similar to smoke, may also be known as     TEC Tarong Energy Corporation
     Total Suspended Particulates (TSP).                    TNPS Tarong North Power Station
     Salinity Measure of salt levels in water and soil.     TPS Tarong Power Station
     Stormwater Rainfall that flows across site.            TSP Total suspended particulates
                                                            WPS Wivenhoe Power Station


     Abbreviations
     AGO Australian Greenhouse Office                       Units
     AS Australian Standard                                 Gg Gigagram (1015 grams), used in Greenhouse
     ATSIC Aboriginal and Torres Straight Islander            Gas reporting
       Commission                                           GJ Gigajoule (109 Joules), used to measure energy
32   BVQi Bureau Veritas Quality                              content of fuels
     CCP Coal combustion products                           ha Hectares
     CO2 Carbon dioxide                                     kg Kilogram
     CO2e Carbon dioxide equivalent (includes other         L Litre
      greenhouse gases such as methane)                     mg Milligram
     CRC Cooperative Research Centre                        ML Megalitre (1 million litres)
     DPI Department of Primary Industries                   MW Megawatt
     EA Environment Australia (Commonwealth                 MWh Megawatt hour
       Government)                                          PJ Petajoule (1015 Joules), used to measure
     EMF Electro Magnetic Fields                              energy content of fuels
     EMP Environmental Management Plan (or                  t Tonne
       Program)                                             µg Microgram (10-6 grams)
     EMS Environmental Management System                    µm Micrometre (10-6 metres), may also be known
     EPA Environmental Protection Agency                      as micron
      (Queensland Government)
Supporting Data


                                                     1996        1997        1998        1999       99/2000 2000/01         2001/02
NOx (tonnes/year)                                    37 900      42 800      38 900      39 100    37 700      43 100       41 400
SO2 (tonnes/year)                                    23 400      21 800      21 300      21 500    29 300(1)   27 400(1)    26 500
Total suspended particulates (tonnes/year)           11 100      10 900      8 900       9 800     8 700       7 054        6 855
CO2e (kilotonnes/year)                               9 585       9 522       8 722       9 497      8 998      9 436        9 489
NOx (kg/MWh sent out)                                3.7         4.2         4.2         3.9        3.8        4.14         3.99
SO2 (kg/MWh sent out)                                2.3         2.1         2.3         2.1        3.0        2.63         2.56
Total Suspended Particulates (kg/MWh sent out)       1.1         1.1         1           1          0.9        0.68         0.66
                                  (2)
CO2e (kg/MWh sent out)                               936         928         935         942        919        916          915
Copper levels in discharge to Meandu Creek (µg/L)    -           -           -           26         25         25           24
TDS in cooling tower blowdown (mg/L)                 910         960         910         900       950         910          946
Volume discharged from cooling tower
blowdown (ML)(3)                                     2 500       5 100       4 200       5 518      6 200      7 780        7 200
                                            (3)
Water usage from Boondooma Dam (ML)                  22 150      25 090      20 220      23 270    21 750      24 340       25 229
Water usage from Boondooma Dam
(L/MWh sent out)                                     2 164       2 446       2 169       2 307      2 222      2 354        2 432
Average Salinity in water from Boondooma
Dam (mg/L TDS)                                       168         181         171         212       229         253          252
Total ash generated                                  1 530 000 1 574 000 1 371 466 1468 000 1384000            1 375 000    1 413 000
Total ash sales (tonnes)                             206 350     231 421     264 566     300 040 322 313       253 855      256 180
Percent ash sales                                    13%         15%         19%         20%       23%         18%          18%
Total cenosphere sales (tonnes)                      8 280       10 570      17 250      14 530    16 030      27 000       9 169(7)
Total oil recycled (litres)                          46 300      45 000      51 000      45 000    28 700      29 400       150 100(5)
Total metal recycled (tonnes)(4)                     90          785         283         94         395        351          948(6)
Oily rags (205 L containers)                         -           -           -           -          -          -            42
Solvents (litres)                                    -           -           -           -          -          -            410
Empty 205L drums (recycled)                          -           -           -           -          -          -            118
Sulfuric acid (tonnes)                               -           -           963         886       882         938          764
Caustic (tonnes)                                     -           -           197         317       331         250          297
Chlorine (tonnes)                                    -           -           120         140       156         201          234
Sodium bromide (tonnes)                              -           -           46          49        50          60           59
                  (10)
Lime (tonnes)                                        -           -           802         565        684        541          1 042
Ammonia (tonnes)                                     -           -           4           3          3          3            2
Sodium hypochlorite (litres)                         -           -           8 375       6 793      7 230      7 840        6 460
                            (8)
Boiler fuel (kilo litres)                            -           -           1 656       1 572      NA         1 126        1 149 (8)
Diesel (litres)                                      -           -           471 800     286 240 118 640       119 040      141 960 (11)
                              (9)
Unleaded petrol (litres)                             -           -           NA          NA         150 000    82 100       132 964
                                                                                                                                            33
Coal (million tonnes)                                -           -           5.39        5.14      NA          5.16         5.22




(1) From 1999/2000 onwards, SO2 estimate based on different             (5) Includes 130,600 L of oil stored in a waste oil tank
    (NPI compliant) calculation method.                                 (6) Includes disposal of:
(2) Tarong Power Station’s carbon intensity for the years 1996-             • Economiser Elements             456 tonnes
    2000 shown above is different from that reported in earlier             • Condensor Replacement           240 tonnes
    Environmental Performance Reviews. This is because                      • Clean up of Nihard Items        31 tonnes
    additional information has made it possible to more accurately          • Other / 27% Chrome              15 tonnes
    estimate emissions and to revise emission estimate techniques.          • General Ferrous/Non Ferrous 206 tonnes.
(3) Water usage and cooling tower blowdown has increased since          (7) Lower cenosphere sales due to change in ash content of coal
    1998. This is due partly to increased station capacity factor           leading to significantly lower production of cenospheres.
    and also to an increase in salt levels in water from Boondooma      (8) Includes recycled fuel oil (86% in 2001/02)
    Dam which means more water must be discharged through the           (9) On-site and pool vehicles only
    cooling tower blowdown to control internal salt levels.             (10)Waste lime kiln dust is used
(4) Quantity of metal recycled depends on program for major             (11)Includes 27 060 L of diesel used in gas turbine. This has not
    works around the station                                                been included in previous years.
Tarong Energy Corporation Limited
ABN 52 078 848 736
10 Eagle Street
GPO Box 800
Brisbane Queensland 4001
Telephone 61 7 3228 4333
Facsimile 61 7 3228 4300
www.tarongenergy.com.au
email@tarongenergy.com.au
Environment Contact: Alan Hayter

Tarong Power Station
PO Box 15
Nanango Queensland 4615
Telephone 61 7 4160 9444
Facsimile 61 7 4160 9305
Community Hotline 1800 300 351
Environment Contact: Harvey Cabrera




                                           Goomeri
                                                                             Gympie
                                         Murgon
                                        Wondai
                                                                       Coorooy
                                                                                         Terra Gas                 Brisbane
                                                 Kingaroy                                Trader
                                                                        Nambour
                                                                                                        Adelaide
                        Tarong Power Station         Nanango
                                                                                        Starfish Hill
           Chinchilla   Tarong Gas Turbine                                               Wind Farm
                        Tarong North Project         Yarraman                                Project
                                                       Moore            Kilcoy
        Glen Wilga            Bell      Cooyar
        Coal Resource                              Toogoolawah         Caboolture
                                                            Esk
                           Dalby     Wivenhoe Power Station                  Brisbane
                                                                  Fernvale
                                       Toowoomba
                                                                        Ipswich




Wivenhoe Power Station
PO Box 38
Fernvale Queensland 4306
Telephone 61 7 5426 7455
Facsimile 61 7 5426 7800
Contact: Trevor Lush

Terra Gas Trader Pty Ltd
and Starfish Hill Wind Farm Pty Ltd
168 Greenhill Road
Parkside South Australia 5063
Telephone 61 8 8372 1900
Facsimile 61 8 8372 1921
www.terragas.com.au
Starfish Hill Community Hotline 1800 827 664
Starfish Hill Wind Farm Contact: Jeff Ware