Northern Water Supply - Business Case

An extensive site selection process commenced in 2022, this has included input from key stakeholders, technical investigations, and a formal multi-criteria-assessment (MCA) process.

Three sites were initially short listed (at Crag Point, Port Lowly and at Mullaquana Station). Mullaquana Station was best performing site in the initial MCA scoring process.

A fourth site at Cape Hardy was added to the short list in mid 2023 after additional industry interest was received that reduced the financial impacts of constructing the plant so far south in the Spencer Gulf meaning was it was a potentially feasible option.

Early engagement with key stakeholder has been favourable towards Cape Hardy as a potential site for the desalination plant.

A supplementary MCA scoring process was undertaken for the Cape Hardy option in mid 2023. A summary of the MCA process including the supplementary process can be found here in our document library.

The supplementary MCA scoring process identified Cape Hardy as the best performing site across the four options considered.

The MCA result has been presented to the South Australian Government to help inform the selection of a preferred study site for detailed Planning and Assessment.

The next steps of the project once a preferred study site has been identified will be:

• Lodgement of a development application and EPBC referral for the desalination plant and pipeline,
• detailed environmental studies (anticipated to be in the form of an Environmental Impact Statement),
• cultural heritage survey and negotiating Native Title agreements,
• negotiating land access agreements,
• infrastructure procurement processes,
• completion of off take agreements, and
• other activities required to provide Government with clear understanding of the risks and opportunities associated with the project.

Feedback can be provided about the MCA outcomes by completing a survey.

Thank you for taking time to provide your feedback. Feedback will be included in the site selection chapter of the environmental impact assessment report.

As part of the 2023-24 State Budget the government announced on 15 June, 2023 that it has allocated funding to partner with industry to undertake further studies including environmental studies, final engineering and costings for the Northern Water project to facilitate a final decision for the initiative.

The final investment decision is due in the second half of 2024.

Stay tuned to Your SAy for more information about the project and how you can be involved in the next steps of the project.

Thank you for your interest in the Northern Water Supply Project Business Case.

The Business Case is now complete and has been submitted to the South Australian Government. The Business Case assesses the potential for a new and sustainable water supply for the Far North and Upper Spencer Gulf by constructing a seawater desalination plant, pipeline and supporting infrastructure.

A fundamental part of the Business Case development has been listening to the issues, concerns and opportunities that are important to stakeholders and the community. Thank you to all those who have been involved in the project so far. The feedback we received was reviewed by the project team and included in the Business Case. A summary report on what we heard during the engagement process and how we plan to incorporate this feedback into the project is now available in the document library here.

Next Steps

The South Australian Government is now reviewing the Business Case to decide if and how to proceed with the project. All aspects of the project are being carefully considered before a decision is made to proceed the project including site options, and governance and procurement process. Potential demand from Green Hydrogen is being factored into the planning. A decision on a location for detailed investigations and planning towards a desalination plant will be taken soon. Any site selected will be subject to detailed environmental assessments and ongoing community and stakeholder engagement.

Keep talking, we are listening.

We want to keep hearing what issues and/or opportunities are important to you. You can connect with the Project Team on 8429 4650, northernwatersupply@sa.gov.au or visit the yourSAy page again for updates and future engagement opportunities.

New documents have been added to our document library.

The MCA report provides a summary of the MCA process that was undertaken from October 2023 to March 2023.

The "NWS SRG Terms of Reference" is a document that describes the role of the Stakeholder Reference Group and how the group will run. The Stakeholder Reference Group is one of the ways that the NWS is following through on its commitment to transparency and accountability.

An Acoustic Doppler Current Profiler (ADCP) has been deployed in the coastal waters off Mullaquana Station to gather hydrodynamic data from the nearshore including wave, salinity, and currents. The ADCP is one of five deployed in the Upper Spencer Gulf contributing to an oceanographic database and Gulf model. The data collected by this ADCP will be used to refine the dispersal modelling and nearshore processes for the Mullaquana Site and provide greater detail to improve design and mitigation planning for a proposed desalination plant.

The Stakeholder Reference Group for the NWS met on 15 February 2023.

The notes from the meeting can be found here in our Document Library

What is net zero?

‘Net zero emissions’ refers to achieving an overall balance between the greenhouse gas emissions produced and those taken out of the atmosphere, so no more greenhouse gas is added to the atmosphere in any given year than is taken out (Climate Council.org.au).

Why is it important to get to net zero?

Greenhouse gas emissions trap warmth in our atmosphere and are a significant contributor to climate change. To avoid the worst impacts of climate change we need to keep the global temperature increase to 1.5o C above pre-industrial levels. It is currently at 1.1o C above these levels and as anthropogenic (human-caused) greenhouse gas emissions continue, so we expect temperatures to continue to increase.

How can we get to net zero?

Energy sources such as coal, gas and oil create around three quarters of global anthropogenic greenhouse gas emissions, so if we can replace these with renewable energy sources, such as wind or solar, this will help reduce these emissions. We can then convert this renewable energy into electricity or into green hydrogen (see below) allowing us to capture, transport and store renewable energy so it can be used in place of oil, coal and gas.

We are already seeing an increase in the popularity of electric cars, with the electricity they use provided by greener energy sources. However, there are many more opportunities to replace non-renewable energy sources with more sustainable alternatives, and green economies need to be supported as they work to reduce emissions and avoid further climate change.

For more information about South Australia’s role more generally in the transition to a green economy see here

How will the Northern Water Supply project support the transition to net zero?

Supporting green hydrogen production

Hydrogen is produced by splitting water into hydrogen and oxygen. If the power used to produce this split is sourced from renewable energy, then it is called green hydrogen. This green hydrogen can then be used to replace fossil fuels currently used in industries which can’t simply switch to electricity, such as long-distance heavy transport and manufacturing, thereby reducing their emissions.

As well as being a fuel, green hydrogen can also be used to generate electricity. Hydrogen plants are often designed to make hydrogen while there is excess energy being generated from renewable resources. This hydrogen is then used to generate electricity when renewable sources are not generating, improving stability in the electricity grid for homes and businesses. In this way, hydrogen enables us to capture and store energy for later use like a battery does.

Green hydrogen production in South Australia requires access to new and high quality water supplies. The area around Whyalla has been identified as a world class site for hydrogen production and the Northern Water Supply (NWS) project is intending to provide a sustainable source of water to this emerging green industry in the Upper Spencer Gulf.

Enabling mining of copper reserves

Copper is vital to achieving net zero. It is used in electric vehicles, batteries, and charging stations as well as being critical for the development of wind and solar power generation. There is no known substitute for copper, and supplies are low across the world due to the increase in demand over recent years. S&P Global* have stated that Unless massive new (copper) supply comes online in a timely way, the goal of Net-Zero Emissions by 2050 will be short-circuited and remain out of reach.

South Australia is home to Olympic Dam, which is the fourth largest copper resource in the world, in addition to four of Australia’s most significant copper discoveries in the past 10 years, three of which are in the Upper Spencer Gulf/Far North region.

The extraction of copper from the far north of South Australia is currently limited by, amongst other things, access to water. Not only is water required for a range of activities during the mining process itself, it is also required to support the accommodation for mining staff to be able to work in these remote areas.

The water currently used for copper extraction is mostly sourced from groundwater resources, including the Great Artesian Basin and there are concerns over the sustainability of these sources and the cultural and environmental implications of its use.

The NWS project will provide a new water source for this key industry, further supporting regional development and crucially, Australia’s work towards net zero.

Providing support for new renewable energy generation in the Whyalla area

The NWS project is committed to being powered by renewable energy. As such NWS will require a reliable, secure and local source of this energy. This requirement will support the case for new renewable energy generation in the region, increasing regional job options for young people in sustainable industries.

If you would like any more information on how NWS will contribute to the net zero transition, please call our team on (08) 8429 4650 or e-mail us at northernwatersupply@sa.gov.au

*S&P Global, 2022, The Future of Copper: will the looming gap short-circuit the energy transition p9.

The NWS team is privileged to work together with Traditional Owners as we continue our investigations for the business case. We completed an initial Cultural Heritage survey on the traditional lands of the Kokatha people in December and look forward to further opportunities to get on Country.