STATE GOVT GIVES GO-AHEAD FOR SPRING GULLY POWER STATION

Queensland is set to maintain its position as Australia’s pace-setter for investment in power generation with the State Government giving the go-ahead today for a new coal seam gas power station, Deputy Premier and Infrastructure Minister Anna Bligh announced today (Tuesday).

“The Co-ordinator-General has completed his evaluation of the environmental impact statement on Origin Energy’s proposed $1 billion Spring Gully Power Station near Roma,” said Ms Bligh.

“Subject to conditions, Origin Energy can proceed with construction.

“Since 1998 when we won government, 75 per cent of new generation investment in the National Electricity Market has occurred in Queensland.

“That amounts to $4.7 billion and means Queensland currently has a generation capacity of more than 10,000 megawatts.

“Completion of the Co-ordinator-General’s assessment of the environmental impacts of the project is another important milestone for the sustainability of the gas power industry in Queensland and an important contribution to meeting the Government’s 13% gas policy target.

“Our Cleaner Energy Strategy which we launched in May 2000 has been responsible for creating a new industry in Queensland

“Spring Gully will be one of the new generation, clean, green power stations in Queensland, producing carbon dioxide emissions that are up to 50 per cent less than traditional coal-fired power stations.

“Situated 80 km north-east of Roma, it has the potential to lift Queensland’s base load energy capability using coal seam gas by 500 megawatts in stage one alone.

“Stage two of the project will enable the power station to increase capacity by a further 500 megawatts in line with future demand.

“Gas to run the power station will be sourced from Origin Energy’s existing Coal Seam Gas facility, which is next to the proposed power station.

“Salt water, usually a waste by-product of the gas extraction process, will be used in the new power station, providing even greater efficiencies.

“This is great news for Queensland’s environment as well as industrial and residential electricity consumers.

“Importantly, the project has the potential to create 400 jobs during construction and 30 permanent jobs if it becomes fully operational.

“The proposed project will see the Department of Main Roads commit $30 million to upgrading the Roma-Taroom Road to support proposed road usage by heavy vehicles. Origin has signalled it would contribute $5 million towards this upgrade.”

Origin Energy announced in July that it plans to invest an additional $114 million in its Spring Gully Coal Seam Gas Project, further strengthening the sustainability of the project.

Media contact: Deputy Premier’s office 3224 6900