Construction of the controversial gas-fired power plant in Kurri Kurri may soon commence, following the approval of Federal Environment Minister Sussan Ley.
Ley said the project had been approved after rigorous assessment and on the condition that the project proponents, Snowy Hydro Limited, met the conditions set by the NSW Government.
“This thorough bilateral assessment with NSW has paved the way for the development and operation of this new critical infrastructure in a way that sensitively manages, protects and rehabilitates the environment,” Minister Ley said.
The Federal Government is providing up to $600M in equity to support the gas-fired power station after setting a target for an extra 1,000 MW of dispatchable energy in NSW following the Liddell closure.
Minister for Industry, Energy and Emissions Reduction Angus Taylor visited Kurri Kurri on February 7 to officially announce the approval.
Taylor said the Hunter Power Project was critical in eliminating the risk to customers after the planned closure of the Liddell power station in 2023.
At peak construction, Taylor said the project would support up to 600 direct jobs and 1,200 indirect jobs across NSW and would be vital in keeping businesses such as the Tomago Aluminium Smelter in operation.
Taylor also criticised the Labor party’s recent promise to amend the project if elected.
Under Labor’s plan, Snowy Hydro Limited would run the power station on 30 per cent green hydrogen once operational, increasing to 50 per cent by 2025 and 100 per cent by 2030.
“Unlike Labor, the Morrison Government has a concrete, costed and commercial plan for the delivery of this important electricity project,” he said
“Our business case demonstrates the project will deliver a double-digit rate of return of 12.3 per cent.
“We’re getting on with it – Labor will only delay it with its plan to double the cost without creating a single extra job or generating a single additional megawatt of power.”
Despite many Hunter community groups opposing the project, the recent announcement revealed that community protest had failed to halt the government’s plan.
Since it was proposed in May 2021, petitions against the site have amassed more than 55,000 signatures, and of the 261 submissions, only two supported the power plants construction.
Gas Free Hunter Alliance co-ordinator Fiona Lee said the announcement was “not surprising”, and it would be “bad for the Hunter, and bad for Australia”.
“Commonwealth Environment Minister Sussan Ley should be protecting the environment, not rubber-stamping dirty, outdated fossil fuel projects which will worsen the impacts of climate change and pollute the local environment,” Lee said.
“Mr Taylor appears to lack all commitment in supporting regional communities to transition away from fossil fuels or to take real action on climate change.”
Lee said the plant would only create 10 long-term jobs.
“The Hunter region needs secure, future-focused jobs,” she said.
“Investing $610 million or more of public funds into an unnecessary and outdated gas plant will create just 10 long-term jobs.
“Instead, we call on Mr Taylor to fund renewable energy and storage and to retrain workers in fossil fuel reliant industries.”
Kurri Kurri resident Lynn Benn said a gas-fired power plant didn’t make sense from any angle, especially “when we need to rapidly move away from fossil fuels”.
“But I am most incensed at the waste of taxpayers money. If it makes sense, then let private enterprise build it,” Benn said.
“For that amount of money, we could safeguard Kurri hospital, give our local bush fire brigades a much-needed boost or provide something for the local kids to do.
“Let’s look to the future, not the past.”
Gas Free Hunter Alliance said they would continue campaigning against the project proceeding.
“The current gas plant still needs to link in with the Sydney Newcastle pipeline, and that project is still before the NSW Planning Department,” Lee said.
“The gas plant doesn’t have any secure gas, so there’s still an opportunity to fight the pipeline even though it is disappointing news that the gas plant itself has received approval.”
The environmental impact statement for the Kurri Kurri lateral pipeline, which will supply the gas for the project, will be released this month.
If approved, construction for the plant will commence in July 2022, with estimated completion in July 2023.
Gas Free Hunter Alliance has encouraged the community to make a submission once the statement becomes available.
Maia O’Connor
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