Loy Yang power station

Climate and renewable energy activists are furious that the federal and Victorian governments are throwing $100 million into a dubious “clean energy” pilot project to produce hydrogen from brown coal in the Latrobe Valley.

The $500 million demonstration plant is at AGL’s Loy Yang power station and mine near Traralgon. It is being built to develop the technology to gassify brown coal and will produce up to three tonnes of hydrogen in its first year. It is expected to create about 400 jobs.  

The 570 workers at the Loy Yang power plant in Victoria's Latrobe Valley will have their wages slashed by between 30% and 65% following a Fair Work Commission decision on January 12 to terminate an enterprise agreement.

The enterprise agreement will be scrapped from the end of January, meaning workers will revert to the minimum award rates until a new agreement can be reached.

The decision caps a bitter 15-month conflict between AGL and the Electrical Trades Union and CFMEU's Victorian mining and energy division over the terms of a new agreement.

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