Transforming South Australia's Water Supply for Green Industry
Key Ideas
  • The Northern Water Supply project in South Australia involves building a 260 megalitre per day desalination plant in Spencer Gulf and a 600 km pipeline to the state's far north.
  • The project aims to provide climate-independent water sources, reduce pressure on groundwater sources, and support renewable industries like critical minerals and green hydrogen production.
  • Funding of $65 million from the federal government, along with contributions from the South Australian government and industrial partners, will go towards feasibility studies and pre-construction activities.
  • If found feasible, the project could unlock $5 billion in investment, boost South Australia's GDP by $150 billion over 30 years, and lead to construction starting in 2028 with operations commencing in 2028.
The Northern Water Supply project in South Australia, recently announced by Treasurer Jim Chalmers, involves the construction of a 260 megalitre per day seawater desalination plant in the Spencer Gulf and a 600 km pipeline to the state's far north. The aim of the project is to provide a climate-independent water source, reduce pressure on far north groundwater sources, and support renewable industries such as critical minerals and green hydrogen production. The project received $65 million in federal funding, part of a $230 million initiative to investigate and plan for the project. The funding will be used for technical pre-construction activities including finalizing industrial offtake agreements, geotechnical investigations, design work, and community engagement. If the project proceeds, it could lead to a significant economic impact, unlocking $5 billion in investment and boosting South Australia's GDP by $150 billion over its 30-year lifetime. Government officials, including Acting Premier Susan Close and Environment and Water Minister Tanya Plibersek, highlighted the importance of the project for enabling green industry growth and reducing dependence on climate-dependent water sources like the River Murray and Great Artesian Basin. The project is seen as crucial for fueling new green industries and supporting the transition to a zero-carbon future. The final decision to move forward with the construction will depend on gaining necessary approvals and commercial agreements. A business case is expected to be ready by 2022-23, with the final decision on the project set for 2025 and operations targeted to commence in 2028. The Northern Water Supply project is viewed as transformative for the environment and local industry, offering opportunities for sustainable growth and innovation in South Australia.
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