Kurri Kurri gas-fired power plant gets green light, after Labor backflip

The $600m power plant at Kurri Kurri in NSW’s Hunter Valley has been approved just days after Labor backflipped on its calls to halt the controversial project.

Environment Minister Sussan Ley at Hartwood Weir outside Conargo in south western NSW. Proposed changes to the weir will impact land owners and they want consultation before it happens. Picture: Richard Dobbins

The federal government has given the environmental green light to a $600m power plant at Kurri Kurri in NSW’s Hunter Valley, days after Labor did an about-face on its calls to halt the project.

The decision means development of the Hunter Power Project – a 660MW capacity gas-fired power plant – will go ahead after Labor withdrew its opposition to the project on the proviso it runs entirely on green hydrogen by the end of the decade.

Environment Minister Sussan Ley announced the project had been given approval on Monday following a rigorous assessment and on the condition that Snowy Hydro Limited meets the NSW’s government’s conditions set when it approved the project. “This thorough bilateral assessment with NSW has paved the way for the development and operation of this critical infrastructure in a way that sensitively manages, protects and rehabilitates the environment,” Ms Ley said.

Energy Minister Angus Taylor said the plant would ensure energy supplies were sufficient and would create local jobs in the Hunter Region.

“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, good for business and, importantly, good for securing affordable, reliable power. It will support up to 600 direct jobs at peak construction and 1200 indirect jobs across NSW.”

Though federal Labor had previously opposed the project, Anthony Albanese announced during a visit to Kurri Kurri in early February that his party would back the publicly funded gas-fire project if elected.

However, the Opposition Leader stipulated the plant should move entirely to green hydrogen, starting at 30 per cent when it opens, a move in step with a broader policy push towards renewable power.

It comes as Labor prepares to defend its seats in the Hunter Valley, including Paterson, where Kurri Kurri is located, and Hunter, where Joel Fitzgibbon is retiring. Mr Taylor criticised Labor’s change of heart last week, describing the move as a “humiliating backflip”.

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