PERTH (miningweekly.com) – The federal government has given environmental approval for the construction of the Hunter power project, in New South Wales.

The 660 MW gas-fired power plant at Kurri Kurri, in the Hunter Valley, will come online in 2023 and will supply power after the closure of the Liddell power station.

Minister for the Environment Sussan Ley said the project was approved after a rigorous assessment and on the condition that the project proponents, Snowy Hydro, meet the conditions set by the New South Wales government when it approved the project.

“This thorough bilateral assessment with New South Wales 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,” Ley said. 

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the Hunter power project would have the capacity to use three different fuel sources, namely gas, diesel and hydrogen. However, he noted that the cost of hydrogen would need to drop in order for the use of hydrogen to become economic at the plant.

“The 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,” Taylor 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 New South Wales. The Hunter power project is also vital to keep important businesses such as the Tomago aluminium smelter operating.”

The government is providing up to $600-million in equity to support the gas-fired power station after setting a target for an extra 1 000 MW of dispatchable energy in New South Wales following the Liddell closure.

The Hunter power project also supports the objectives of the government’s gas-fired recovery programme, which is crucial to help the economy recover from the impacts of the Covid-19 pandemic, said Taylor.