Kurri Kurri gas plant receives environmental approval

Construction of the Kurri Kurri gas-fired power plant can now begin, leading to hundreds of jobs for the Hunter Valley region.

Construction of a new gas-fired power plant in the Hunter Valley can now begin after the project received environmental approval, kickstarting hundreds of jobs for the region.

The 660 megawatt plant at Kurri Kurri to be operated by Snowy Hydro Limited has been given the green light to go ahead, with the project on track to be completed in 2023 in time to sure up peaking power capacity in NSW when the Liddell coal-fired power station shuts.

Snowy Hydro will build a new gas plant at Kurri Kurri similar to the one it already operates at Colongra. Picture: Adam Yip

Environment Minister Sussan Ley said the project had been approved after a rigorous assessment and on the condition Snowy met the conditions set by the NSW Government when it approved the project.

“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,” she said.

Minister Angus Taylor said the Kurri Kurri gas plant will provide reliable, affordable power for the Hunter Valley. Picture: NCA NewsWire / Gary Ramage

Industry, Energy and Emissions Reduction Minister Angus Taylor said the Hunter Power Project was “critical” to keep the lights on and power prices low after the closure of the Liddell station.

“The Morrison Government is committed to delivering the Hunter Power Project on time and on budget to ensure there is no risk to electricity consumers after Liddell closes,” he said.

“The project is good for jobs, it’s good for business and importantly it’s good for securing affordable, reliable power. It will support up to 600 direct jobs at peak construction and 1,200 indirect jobs across NSW.

“The Hunter Power Project is also vital to keep important businesses such as the Tomago Aluminium Smelter operating.”

Snowy Hydro Limited has been given up to $600m in equity to build the Kurri Kurri plant. Picture: Adam Yip

Mr Taylor said the government’s Kurri Kurri plan was “concrete, costed” and commercially viable, unlike the recent proposal put forward by Labor, which included starting the plant with a 30 per cent green hydrogen capacity.

“Our business case demonstrates the project will deliver a double-digit rate of return of 12.3 per cent,” Mr Taylor said.

“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.”

The federal government has allocated up to $600 million in equity to support the gas-fired power station after setting a target for an extra 1,000MW of dispatchable energy in NSW following the Liddell closure.