Labor backflips on Kurri Kurri gas plant

Labor will backflip on its opposition to the Kurri Kurri gas plant but promise to convert the facility to a green-hydrogen generator.

Anthony Albanese will travel to the NSW Hunter Valley seat of Paterson on Tuesday to unveil Labor’s plan to back a green-hydrogen generator in the region. Picture: David Crosling

Labor will backflip on its opposition to the Kurri Kurri gas plant but promise to convert the facility to a green-hydrogen generator by the end of the decade.

The Australian understands Anthony Albanese and opposition energy spokesman Chris Bowen will travel to the NSW Hunter Valley seat of Paterson on Tuesday and unveil Labor’s plan to back a generator in the region.

Chris Bowen. Picture: Gaye Gerard

Labor last year opposed the Morrison government’s decision to build a $600m gas plant in Kurri Kurri, a move that was internally divisive and publicly rebuked by Paterson MP Meryl Swanson and Hunter MP Joel Fitzgibbon.

As a compromise, Labor will instruct Snowy Hydro Limited to operate the plant on 30 per cent green-hydrogen, moving to 100 per cent by 2030.

The Morrison government’s proposal for Kurri Kurri – designed to replace the Liddell coal-fired generator – can also be converted to a green-hydrogen plant.

Energy Minister Angus Taylor said at the time the plan was critical for driving investment and keeping electricity prices down.

The NSW government in December approved the construction of the government-funded power station, which would be built on the site of the now demolished Kurri Kurri aluminium smelter.

Labor has for months called for the Morrison government to release its business case and justify the $600 million spend.

The former Kurri Kurri aluminium smelter. site. Picture: Regrowth Kurri Kurri.