Prime Minister Anthony Albanese is steadfast in his commitment to Labor’s ambitious initiative to convert the Hunter Power Project at Kurri into a green hydrogen power generator.
This project has faced substantial cost increases, escalating from an initial estimate of $600 million to $950 million, yet the government remains focused on advancing this significant step towards sustainable energy.
Initially announced in 2020, the 660-megawatt gas peaker was intended to begin operations in late 2023, coinciding with the closure of the Liddell power station. However, due to delays and additional costs, it is now slated for completion by mid-2025.
Recognizing the strategic importance of this project, Labor pledged an additional $700 million before the 2022 election, bringing the total project cost to $1.65 billion. This investment aims to bolster job security and reduce greenhouse gas emissions, with a long-term goal of transitioning to green hydrogen within the decade.
Realizing the dream of running the plant on 100 percent green hydrogen by 2030 proved more challenging than expected. The facility’s turbines were intended for a 15 percent hydrogen blend, but technical limitations have slowed progress. These difficulties were a factor in the resignation of former Snowy Hydro CEO Paul Broad and have affected multiple proposed green hydrogen projects.
In his address at Tomago Aluminium, Albanese expressed unwavering support for the project. He highlighted the government’s intention to navigate technical challenges without additional taxpayer contributions. The government remains firm on its financial commitment, seeing the project as vital for the region.
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