Australia’s New South Wales (NSW) Government has granted approval for the 660MW Hunter Power Project in Hunter Valley.
Australian energy company Snowy Hydro will develop the A$600m ($425m) gas-fired power plant, which will be located in the Kurri Kurri region.
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The project is expected to create 600 direct jobs at the peak of its construction phase, as well as 1,200 indirect jobs across NSW.
Australia Environment Minister Sussan Ley said: “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.”
The Hunter Power Project is due to be built by next year and is expected to ensure a reliable supply of power to the state following the closure of the Liddell coal-fired power station next year.
It is also expected to support some key local businesses, including the operations of the Tomago Aluminium Smelter.
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By GlobalDataOpposing the project’s approval, Climate Council spokeswoman Dr Madeline Taylor said that the power plant ‘simply isn’t needed’, noting that gas power stations produced only 1.3% of NSW’s power late last year.
Taylor said: “Energy analysts and economists agree it will raise electricity prices for residents and businesses, not lower them.
“As renewable energy and storage technologies become cheaper by the day, this short-sighted investment in a new gas-fired power station, built with taxpayer money, makes no sense from an energy or economic perspective, and will likely end up as a stranded asset.”
In November 2020, the NSW government published its Electricity Infrastructure Roadmap, which aims to attract A$32bn of private investment in the state’s renewable energy and pumped hydro zones.
The roadmap covers a 20-year period and is expected to create a total of around 9,000 jobs by 2030.
