Frequently Asked Questions

Initial analysis indicates that the plant could provide up to 260 Megalitres of water per day. By comparison, South Australia uses just more than 2,700 Megalitres of water per day on average. 

No, at this point there has been no commitment made by the government to build a desalination plant.  The government has only committed to funding a business case to investigate options for a new water supply; and undertake high level assessment of the cost, benefit and risks for proceeding with the preferred option.  

No, we are assessing three potential sites to use as the basis for the business case. The project team has met with (and will continue to meet with) a range of key stakeholders and their feedback will assist us in analysing the various sites and identifying a preferred site for further investigations.  More information about this process is provided in the question 'How will a study site be chosen?'

The project team expect to announce the study site in early 2023.  

Initial investment in the project is expected to be between $3 – 4 billion.  It is anticipated that this will be largely funded by water users rather than by the government.  However, detailed capital costs and funding arrangements are yet to be assessed as part of the business case development currently being undertaken by Infrastructure SA.   

The business case is jointly funded by the Australian Government and South Australian Government. Australian Government funding is provided through the National Water Grid Fund.   

As with other water supply options within South Australia, the Northern Water Supply Project is looking to provide water supply for commercial sale in the Upper Spencer Gulf and far north South Australia. Upfront capital and operational costs are being assessed together with customer demand and technical optimisation studies. All of this information will inform the business case and governments’ decision of how, or if, to proceed and this decision is expected to be made in early to mid 2023.  

The Northern Water Supply Project began high level environmental studies in March 2022 as part of narrowing down sites for further detailed investigation. 

The project team will continue to work with environmental specialists and stakeholders to identify and minimise environmental risks, ensure appropriate management and mitigation is included, and increase environmental opportunities. 

A project of this nature requires at least 12 months of detailed environmental studies to gather adequate data for an impact assessment. The detailed assessments are currently being scoped and will commence early in 2023. If the business case is approved, environmental studies will continue under State and Federal government requirements to monitor, assess and mitigate any risks. 

Any decisions will be evidence-based and consider all environmental, social and economic impacts. The University of Adelaide will provide an independent review of the marine and oceanographic components of the environmental assessment. 

Further detail on the nature, scope and direction of the environmental assessment will be made available throughout the project and the community will be able to provide feedback throughout the process..  

The project, if approved, would create job growth in the region, specifically in construction, renewable energy production, expanded mining and resource processing, while supporting existing and future agriculture and pastoral activities.  A detailed assessment of the number of jobs that are likely to be created will be undertaken during the development of the business case, however, it is anticipated that a project of this nature would create several thousand new jobs.    

 Secure access to water means existing industries can confidently expand, diversify and strengthen the economy in the region. Additionally, the project would support the establishment of new green industries for the Upper Spencer Gulf. 

Economic growth would support the development of new businesses, increased recreational opportunities, and improved social infrastructure that will enhance the liveability of the Upper Spencer Gulf for all communities. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) anticipate the project will generate around $750 million in economic activity annually. 

Work is currently being undertaken to select the best location for the project with consideration for threatened species and threatened ecological communities. Once site selection is completed, a rigorous approval process will commence, and the project will be assessed under the Environment Protection Biodiversity and Conservation Act 1999. To conduct this assessment, a ‘Protected Matters Search Tool’ is used to produce a report of all the threatened species and threatened ecological communities within the project footprint and associated buffer zone.  

This list of species and threatened ecological communities are then assessed against a set of standard significant impact criteria as outlined by the Department for Climate Change Environment and Water. This will allow Infrastructure SA to consider design strategies to avoid and/or minimise potential impacts to the environment. This self-assessment is submitted as a referral to DCCEEW for review. If it considers that the project has not adequately minimised the impact to the environment, DCCEEW will set conditions on the project which must be adhered to.