Senator Nita Green questions tender process after pulling funds for the Daintree Microgrid Project

A Far North senator has defended Labor’s environmental credentials after withdrawing funds for a renewable energy project in an environmentally sensitive region.

Senator for Queensland Nita Green has criticised the process that led to Volt Advisory Group . Picture: NCA NewsWire / Martin Ollman

A Far North senator has defended Labor’s climate credentials after withdrawing funds for a renewable energy project in an environmentally sensitive region of southern Cape York.

Traditional owners and residents in the Bloomfield Valley expressed outrage after it was announced that almost $20m of federal funding had been pulled from the long awaited Daintree Microgrid Project last week.

Artist impressions show the full extent of plans to create a new microgrid in the Daintree with a large solar farm. Picture: Supplied

But Senator for Queensland Nita Green questioned the process that led to Volt Advisory Group and the federal government signing a deal to deliver the program in 2022 under the then Morrison government.

“There was no merit-based selection process,” Ms Green said. “There was no tender process for this project.

“Our government continued that funding in good faith, but it’s clear now that they haven’t been able to finish the project under the contract terms, and that’s really important.

“When we’re dealing with taxpayer funding, we need to make sure that the projects that we fund can be delivered.”

Ms Green also dismissed claims by Member for Leichhardt Warren Entsch the federal government had scared off prospective investors in the project.

“They’ve had over three years to get this project off the ground, to get that foreign investment,” she said.

“They needed an extra $45 million to get this project constructed.

“I don’t know if that cost increased. I don’t know how close they were to securing those investors, but what I do know is that this project was selected by the previous government.

“It was given to them with no tender, no experience in delivering the project, and now people like Warren Entsch are surprised that the project hasn’t been able to be delivered.”

Former Cairns Taipans professional basketball player Matt Smith has been officially endorsed as the Labor Party candidate for the seat of Leichhardt at the next federal election. Picture: Brendan Radke

Labor candidate for Leichhardt, Matt Smith, said he would still be willing to meet with the project’s proponents.

“I’m happy to sit down with Volt and hear what they’ve got to say,” Mr Smith said.

“They’ve not reached out to me yet, so all I’m seeing is the media stuff at the moment.”

The microgrid, which was to be operated in partnership with Eastern Kuku Yalanji peoples, aimed to provide renewable energy to about 300 customers, with an 8MW solar farm and a 1MW clean hydrogen plant based at Cow Bay.

Ms Green said a separate $11.8m microgrid project had been funded for Wujal Wujal through the Disaster Relief Fund.

“Our government has a 82 per cent renewable energy target,” she said.

“We’re rolling that out around the country on projects that have started construction and are connecting to the grid to make sure we have renewable energy to reach our climate goals.”

Originally published as Senator Nita Green questions tender process after pulling funds for the Daintree Microgrid Project