The companies are repurposing the coal-fired power plant to produce green hydrogen.
Initial renewable electricity production through new wind and solar could be 250MW, pending the feasibility study’s outcomes.
Once complete, it is also anticipated the Hunter Valley Industrial Clean Energy Hub will create thousands of jobs.
Currently, the Liddell and Bayswater power stations account for more than 40 per cent of the carbon dioxide emissions in NSW.
Repurposing of the sites aims to assist NSW to meet its target of halving its emissions by 2030.
FFI founder and chair Dr Andrew Forrest AO said there were many benefits to the repurposing.
“FFI’s goal is to turn regional Australia into the global green energy heartland and create thousands of jobs now and so many more in the future,” Forrest said.
“Repurposing existing fossil fuel infrastructure with forward looking companies like AGL to create green hydrogen to help power the world, is the solution we have been looking for.”
Forrest said the announcement was another step in reaching net zero.
“Green hydrogen is the only true zero-carbon, zero-methane fuel – every other type of hydrogen requires the burning of fossil fuels,” he said.
“It is a practical, implementable solution that can collapse emissions and create strong economies worldwide if leaders like Graeme are fully supported by global investors and local government alike.”