Ministerial Statement

State Prosperity Project

The Hon. P.B. MALINAUSKAS (Croydon—Premier) (14:02): I seek leave to make a ministerial statement.

Leave granted.

The Hon. P.B. MALINAUSKAS: I can today inform the house about a project with the potential to transform the future of our state's economy—the Northern Water Project. If progressed, Northern Water would see construction of a 260-megalitre-per-day desalination plant on Eyre Peninsula and a 600-kilometre pipeline to transport desalinated water for industrial use in the Far North of our state. This project would unlock the full potential of our state's critical minerals, in particular copper. We have more copper than all the other states combined, and among the richest copper resource anywhere on earth.

Today we have released a comprehensive business case for Northern Water, with financial modelling undertaken by Deloitte. This business case has found that the project has the potential to generate more than $5 billion in annual economic benefit to our state and more than 4,000 ongoing jobs. It could lead to a tripling of copper production and an additional $9 billion in royalties for our state by 2050.

The private sector can clearly see the potential of this transformative project. Today, the state government has signed a significant agreement with some of our nation's biggest companies. BHP, Fortescue Future Industries, Origin Energy and Amp Energy are among private sector companies who will contribute funding towards pre-final investment decision activities for the Northern Water project. This is a significant step forward.

Investigations in the lead-up to the final investment decision include a range of project planning, design and assessment activities to provide a comprehensive understanding of expected project impacts, opportunities, costs and benefits. Crucially, as we progress towards a final investment decision, the state government and BHP have also agreed that BHP would cover the state's costs to a maximum value of $100 million if the company withdraws from Northern Water before FID or elects not to proceed with an economic offtake agreement.

Northern Water is just one part of what we are calling the State Prosperity Project. We will officially launch the State Prosperity Project at the major economic summit we are holding across three nights in the Upper Spencer Gulf, starting this Sunday. The State Prosperity Project is all about seizing a once in a generation opportunity for our state. The global energy transition towards decarbonisation is set to drive the world's economy for years to come. With our unique combination of plentiful solar and wind resources and valuable minerals such as copper and magnetite, we have what the world needs to decarbonise. Northern Water would provide a sustainable water source for industry.

The other key ingredient is hydrogen. The house is well aware that the state government is progressing with plans to build the world's largest hydrogen electrolyser and power plant in Whyalla. By harnessing our global leadership in renewable energy, we want to become a global leader in hydrogen, an energy source tailor-made for a decarbonising world. The mighty cities of Whyalla, Port Augusta and Port Pirie stand to be among the biggest beneficiaries of this economic transformation, a reindustrialisation of the Upper Spencer Gulf.

My government is determined to ensure we seize this opportunity, with the potential for thousands of jobs and billions of dollars of economic activity heralding a new area of prosperity for our state. I look forward to having more to say about the State Prosperity Project this weekend.

Members interjecting:

The SPEAKER: Order! The member for Florey is warned.