Proposed $1.3bn NSW Port Kembla power station reaches new milestone

Planning approvals for the proposed Port Kembla power station will be fast tracked by the New South Wales Government following the declaration of the $1.3 billion project as a Critical State Significant Infrastructure (CSSI). 

The announcement highlights the importance of this development to the state’s renewable energy capacity. The CSSI announcement also takes this proposed project a step forward to safeguarding New South Wales’ future energy security as well as generating jobs at a time when it is needed the most. 

“The Port Kembla power station will be a gamechanger, not just for NSW but Australia. 

“It will provide the energy capacity our state needs as existing coal-fired power stations reach their end of life, and household power bills will be the big winner as the project maintains downward pressure on prices. 

“The proposed dual-fuel power station, combining gas and green hydrogen, is the right project at the right time, and its CSSI declaration is another example of the NSW Government’s determination to forge ahead with a project that helps encourage other businesses to invest with confidence in the Illawarra,” Deputy Premier John Barilaro said. 

The billion-dollar power station development is anticipated to produce approximately 635MW of electricity on demand and create up to 700 jobs during its construction. 

Once approved, the Port Kembla power station will be vital to the state’s transition towards “cleaner, greener renewables by firming up supply and keeping energy prices low”. 

“The NSW Government has a secure plan for the transition to renewables and the Port Kembla proposal should be declared CSSI because it will be vital to achieving a low-carbon emissions based economy. 

“Port Kembla is one of the state’s most valuable industrial hubs and provides local employment. The proposed gas turbine will support 35 jobs once up and running,” Minister for Planning and Public Spaces Rob Stokes said. 

The Port Kembla power station is expected to operate on 50 per cent green hydrogen by volume initially and is projected to fully operate on renewable energy by 2030. 

“Port Kembla is the industrial engine room of our economy and one of the first hydrogen hubs in NSW. 

“If approved, the dual hydrogen-gas design of this project will create early demand for the green hydrogen needed to decarbonise the state’s heavy industries and set them up to succeed in a low carbon global economy,” Minister for Energy and Environment Matt Kean said. 

Squadron Energy, the project proponent, can now proceed to request for assessment requirements for the preparation of an Environmental Impact Statement (EIS) which, in turn, will be subject to extensive community consultation as well as a full environmental assessment. 

Once granted approval, the Port Kembla power station is expected to be operational and begin supplying electricity to customers by the summer of 2024-25. 

“Squadron Energy supports the NSW state government’s goal in achieving net-zero emissions by 2050 to meet their commitment under the Paris climate deal, and our objectives are well aligned with that of state governments and the Commonwealth. 

“Our ambitions for this project are significant and we see the initial power station supporting the development of an emerging green energy precinct at Port Kembla, one that underpins future investment to develop industrial uses of and applications for hydrogen or ammonia demand or renewable energy. 

“We believe this project can be a catalyst for future development of green hydrogen projects in the Illawarra region,” Tattarang Chief Investment Officer John Hartman said. 

Source: NSW Government – Media Releases; NSW Government – Department of Planning Industry & Environment; Squadron Energy; Renew Economy; Inside Construction