Tugun Desalination Plant Study

Desal Plant Study to examine Tugun Desal Plant operating options

Minister for Energy and Water Supply Mark McArdle said today he was closely examining all options on the future of the Tugun Desalination Plant to save tax-payer losses on the $1.2b project.

“It doesn’t operate to its full capacity and keeping it idle is costing millions. The operating costs of the plant this financial year to the end of April has been $14.2 million,” he said.

“Whilst operating it in “hot standby” mode saves about $10 million per annum, compared to continuous operation at one third capacity, it also creates additional asset risks as the plant was not designed to go through frequent stop/start cycles.” Mr McArdle said.

“I have therefore requested a review and a report on the best options for the operation of the desalination plant. This review will fully evaluate how best to use the efficiency and effectiveness of the plant in the short to long term.”

“I recently visited the plant with the local Member, Minister Jann Stuckey and we will work to solve this problem.”

In 2004 the Gold Coast City Council planned for a 50 megalitre per day desalination plant at Tugun to counter water supply shortages on the Gold Coast. The Beattie government almost tripled the scale to 125 megalitres per day and the plant is operated under an alliance between Seqwater, Veolia Water Australia and John Holland Pty Ltd.

“The previous government inflated its capacity beyond its needed functional optimum and when the drought ended its use came under question,” Mr McArdle said.

“But it must be acknowledged that Tugun proved its value during the January 2011 flood by keeping Brisbane supplied with drinking water. I understand however that the supply could have done so with its original 50 megalitre capacity,” Mr McArdle said.

4 June 2012 – K M Collins 0417 267 982