Origin Energy has announced it will close down the Eraring Power Station within 20 years as part of a commitment to reduce carbon emissions.
At their AGM in Sydney yesterday, Origin said it would set its own carbon reduction targets in order to demonstrate global leadership on climate change.
The Eraring Power Station is Australia largest single source of power with a coal-fired generation capacity of 2880 megawatts.
Closure of the plant was already scheduled to occur in the 2030s, at the end of its 50 year life.
Origin Energy managing director Grant King said energy companies were responsible for two-thrids of global carbon emissions, and had an obligation to change that behaviour.
"Origin has been preparing for a carbon constrained world for a long time and will continue to play an active role in developing low carbon and renewable energy solutions to meet the world's growing demand for energy," King said.
"The way we conduct our business today already includes much of what is in the commitments.
“But we can do better and by joining this coalition demonstrates not only are we serious about these issues, but we are prepared to be open and transparent about our efforts."
Image: The Australian