Snowy Hydro plans to construct a gas-fired power station near Kurri Kurri on the site of the former Kurri Kurri aluminium smelter, in the Hunter region of NSW. The project includes the construction of two open-cycle gas turbines, with an inital generation capacity of 660 megawatts (MW), and potential to increase to 750 MW.
The turbines will be capable of including up to 15 per cent of hydrogen in their feedstock, with potential to increase this to 30 per cent.
The project also includes a 132 kilovolt electrical switchyard, located adjacent to the power station. Gas transmission will be via a new lateral pipeline, to be developed by a third party and subject to a separate planning approvals process.
Key Dates
| May 2021 | Project Announcement |
| Jul 2021 | Expected final investment decision |
| Feb 2022 | Construction Commencement |
| Feb 2022 | Contract Award |
Funding contributions
| Federal Government | |
|
Federal funding is to be provided through the government-owned Snowy Hydro. |
|
Procurement
| Procuring Agency: | Snowy Hydro |
| Successful Tenderer: | UGL |
PROJECT HISTORY
| Jul 2020 | A Feasibility Study was undertaken by Jacobs. |
| Sep 2020 | The Federal Government announced that without an increase in private sector investment in gas to produce 1000 megawatts by April 2021, the government would step in to ensure there is enough dispatchable generation with the retirement of the Liddell coal-fired power plant. |
| Feb 2021 | The NSW Department of Planning, Industry and Environment Secretary's Environmental Assessment Requirements were issued for the preparation of Environmental Impact Assessment of the project. |
| May 2021 | The Environmental Impact Statement was put on public exhibition, closing 9 June. |
| May 2021 | The Federal Government confirmed it will provide $600 million to fund the project. Although the Federal Government stated that funding for the project was committed in the 2021-22 Budget, through the Federal Government-owned Snowy Hydro, this commitment was not detailed in the Budget papers, either specifically or as part of a broader package. |
| Dec 2021 | The NSW Government approved the project as State Significant Infrastructure, subject to conditions. |
| Feb 2022 | UGL were appointed principal contractor for the project. The $185 million contract involves the construction of two gas turbine generators. |
| Dec 2022 | The NSW Minister for Planning granted State Significant Infrastructure planning approval for the Kurri Kurri Pipeline that will supply gas to the plant. |
| Sep 2023 | The Snowy Hydro 2024-2028 Corporate Plan was released, revealing a cost increase for the project from $600 million to $950 million. |
