DESALINATION PLANT

In reply to the Hon. M. PARNELL (19 October 2011) (First Session).

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers): The Minister for Water and the River Murray has been advised:

1. At the commencement of the desalination project, the South Australian Government made a genuine commitment for the 50 GL per annum desalination plant to be carbon neutral.

In simple terms, this means that all of the energy used (or carbon equivalent of that energy) in the construction and operation of the desalination plant would be offset by an equivalent amount of energy generated from a source that does not add carbon to the atmosphere. Our aim was to ultimately achieve no additional carbon to the atmosphere as a result of this project.

Following the Government announcement, a range of products that were available in the market to achieve carbon neutrality were investigated by SA Water. Questions were raised by SA Water and the market itself on the so called 'carbon neutral' claims within those products. All of the products lacked a transparent auditable process to ensure true carbon neutrality. This resulted in SA Water seeking a review by the Government on the use of the term carbon neutral.

In September 2009, following a competitive bid process and a review of the valid products available to provide energy for the desalination plant, the Government endorsed an Energy Procurement Strategy that involved purchase of 100 per cent renewable electricity to cover the operational energy needs of the desalination plant at Port Stanvac. The Government also extended the requirement to the purchase of accredited renewable energy for the 100 GL per annum expansion works. A formal media release was issued by the Government on 8 September 2009, which clarified this matter.

2. The Government formally announced its strategy to purchase 100 per cent renewable energy to off-set the operating energy used by the desalination plant in September 2009.

3. This matter has been addressed in the response to question one.

4. In the Environmental Impact Statement (EIS), SA Water made a commitment that 'strategies are being developed to manage the greenhouse gas emissions associated with the construction and operations of the proposed desalination plant'. These EIS commitments have not been abandoned.

5. The Government is leading the nation in the area of renewable energy and has a strong commitment to ensure that any products purchased are reliable, accredited and adds significant value to the South Australian economy.