New significant milestones reached on proposed Northern Water Project

Two significant milestones have been achieved on the proposed Northern Water desalination plant in South Australia. 

Mullaquana Station, located 20 kilometres south of Whyalla, has been chosen as the preferred site for the new facility. 

This site was identified as the most appropriate for the desalination plant, which will not only support regional industrial opportunities but will also best balance social, environmental and economic opportunities and risks. 

A multi-criteria analysis compared the two potential site locations that were being considered – Mullaquana Station and Cape Hardy, on the eastern Eyre Peninsula. 

The criteria for the comparison included strategic objectives, economic and financial considerations, social outcomes, environmental impacts, and project deliverability. 

Building the proposed desalination plant at Mullaquana Station will also save about 200 kilometres of pipeline, reducing potential costs and environmental impact. 

Choosing Mullaquana Station as the preferred site for the desalination plant marks an important milestone for the Northern Water Project and it enables project planning, procurement and statutory assessment activities to progress. 

“Mullaquana is clearly the best site for the proposed desalination plant from an environmental and economic perspective. It was good to see sites at Point Lowly and further north ruled out given the environmental sensitivity of the Upper Spencer Gulf. 

“It makes sense to locate the proposed plant near a major industrial city and its contractor base and accommodation. The other benefit is that it is 200km closer to the main user of the water at Olympic Dam, compared to Cape Hardy. 

“If the project goes ahead it will represent a real economic boost for Whyalla and the Northern Spencer Gulf,” Member for Giles Eddie Hughes said. 

“Northern Water is an exciting project with the potential to transform South Australia. 

“A new, long-term supply of sustainable water will unlock South Australia’s abundant copper resources and support broader economic growth in the region,” Copper SA Asset President Anna Wiley said. 

In addition to the announcement of a preferred site, two standout consortia that are best placed to deliver the project have been identified following a comprehensive Expression of Interest process. 

The two shortlisted consortia are: 

• WaterConnector – comprised of Acciona Construction Australia Pty Ltd and Acciona Agua Australia Pty Ltd 

• Watermark – comprised of Clough Project Australia Pty Ltd (Webuild Group), Fisia Italimpianti SpA (Webuild Group), CPB Contractors Pty Ltd and Sacyr Water Pty Ltd 

Both consortia have vast experience working on Australian as well as global desalination and pipeline projects. They are now invited to provide detailed bids that outline how they would design, build, operate and maintain the proposed Northern Water desalination plant and pipeline. 

During Northern Water’s initial call for Registration of Interest, about 40 individual organisations responded. This process attracted participants locally, nationally, and internationally. Following this, several consortia were formed and invited to submit formal Expressions of Interest. 

The competitive procurement process for this project will result in a market-tested proposal that will inform Final Investment Decision, which is expected in 2026/27 financial year. 

“We know SOuth Australia is leading the world with its uptake of renewable energy, but the opportunity presented by the state’s untapped copper deposits is one that needs to be realised. 

“Northern Water would underpin the minerals sector in our state, generating benefits for individuals, businesses and service providers, as well as international investors. 

“We’re very excited to be working with world experts in desalination and pipeline design, construction and deliver as we develop the opportunity for South Australia to benefit from the project. 

“Access to this new clean water source for industry, combined with our state’s unique ability to generate renewable energy from sun and wind, could underpin the success of not only the region, but the entire state,” Minister for Energy and Mining Tom Koutsantonis said. 

The desalination plant facility is proposed to include: 

• A marine intake and outfall system 

• A reverse osmosis plant 

• Desalination water storage 

• Power lines and high-voltage substations to supply power to the desalination plant and pump stations 

The project is also proposed to deliver a transfer system that will include a pipeline, pump stations and water storages through the Upper Spencer Gulf and Far North, ending at Olympic Dam. 

Supporting infrastructure such as staff amenities, additional road connections, telecommunications lines, and electricity infrastructure will also be required to support the desalination plant and transfer system while temporary facilities including laydown areas, accommodation and site offices will be needed for construction. 

Northern Water Project map (source: Northern Water)

If the project proceeds, it has the potential to unlock major industrial growth that will generate thousands of new jobs alongside billions of dollars in annual economic benefits all while reducing pressure on the culturally and environmentally significant Great Artesian Basin. 

Moreover, this project would facilitate increased production of water-intensive copper, with South Australia being home to almost 70 per cent of Australia’s economic copper reserves. 

“This is a massive milestone for the Northern Water Project and, potentially, a massive milestone for Whyalla. 

“South Australia is home to almost 70 per cent of Australia’s proven copper deposits, and there is a generational opportunity to maximise the benefit of this critical mineral for our entire state. 

“If green-lit, Northern Water will support South Australia’s strategic mineral industries, including magnetite for steel production and copper expansion at Olympic Dam, Oak Dam and Carrapateena. 

“My Government’s intervention has ensured the Whyalla steelworks could not only be saved, but be given the opportunity to thrive – and this new water supply is poised to become the next big opportunity for the Upper Spencer Gulf. 

“We’ve been pleased with the calibre and volume of responses to our initial registration of interest, but I’m delighted we have now condensed this down to the two highly-credentialled consortia shortlisted. 

“Northern Water, once constructed, will be a game0changer for the state, and now with the best of the best proposing how they’ll deliver it, South Australia’s industrial future is indeed looking bright,” Premier Peter Malinauskas said. 

The cost of delivering the Northern Water Project would be recovered by future commercial offtake agreements with industrial customers, principally BHP. 

This project is estimated to support more than 4,000 jobs annually during its construction phase. 

“BHP is pleased to become a foundation commercial customer to the Northern Water Project. 

“This is a compelling example of national strategic infrastructure. It will enable multi-industry regional economic growth, including a potential doubling of South Australia’s copper production. 

“Led by State Government, with Federal Government support, this project represents the best of government and business working together to create investment and South Australian jobs,” BHP CEO Mike Henry said. 

Source: Government of South Australia – Media Releases; Northern Water; Glam Adelaide