A proposed $1.3 billion hydrogen-gas turbine power station in Port Kembla has been declared Critical State Significant Infrastructure (CSSI), given its importance to renewable energy capacity in New South Wales.
Deputy Premier John Barilaro said it is a massive step towards safeguarding the state’s future energy security while providing jobs during challenging times.
“The Port Kembla Power Station will be a gamechanger, not just for NSW but Australia,” Mr Barilaro said.
“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.”
Minister for Planning and Public Spaces, Rob Stokes, said the proposed power station will produce up to 635 megawatts of electricity on demand and create 700 construction jobs.
“If approved, the Port Kembla Power Station will be a critical part of the NSW energy mix as we move to cleaner, greener renewables by firming up supply and keeping energy prices low,” Mr Stokes said.
“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 Energy and Environment, Matt Kean, added that the proposed power station has committed to using up to 30 per cent green hydrogen.
“Port Kembla is the industrial engine room of our economy and one of the first hydrogen hubs in NSW,” Mr Kean said.
“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.”
The proposed Port Kembla Power Station is being developed by Australian Industrial Power, a part of Tattarang’s energy division, Squadron Energy.
Subject to the execution of formal project, environmental and grid connection approvals, the power station could be operational and able to supply electricity to NSW customers from the summer of 2024-2025.