The Malinauskas Government is backing in a new project poised to turn Port Augusta into a national hub for the burgeoning green cement industry – an environmentally-friendly alternative to carbon-intensive cement.
The Government will provide a $12 million loan to Hallett Group Pty Ltd to back the company as it progresses its $200 million Green Cement Transformation Project, which will repurpose the site of the former Northern Power Station into a beacon for low-carbon economic transition.
The project adds to an estimated $2.5 billion in capital investment in energy-related projects completed and in the pipeline for Port Augusta and the Upper Spencer Gulf since 2016.
When completed, the Green Cement Transformation Project will see two infrastructure hubs, at Port Augusta and Port Adelaide, where waste by-products from Port Augusta's Northern Power station ash dam and the Nyrstar Port Pirie smelter can be re-purposed into green cement.
The new approach will use flyash from the Port Augusta legacy dam and the Nyrstar Port Pirie slag pile as 'supplementary cementitious materials' (SCMs) in the production of green cement.
SCMs are known to improve the long-term strength and durability of cement while reducing the carbon dioxide emissions of cement production by as much as 30 per cent.
Crucially, around 150 people will be employed during the project's construction phase, and it is expected to create approximately 50 ongoing roles.
Once operational, the project is expected to stimulate other economic activities on the Upper Spencer Gulf including carbon dioxide reuse, synthetic fuels, mineral recovery and potential green lime manufacturing.
The Federal Labor Government has also contributed a grant of $20 million to the project through the Modern Manufacturing Initiative.
The region continues to attract significant energy investments, as it is poised as a key centre in South Australia's future prosperity.
Construction is set to begin within months on a 270 MW Battery Energy Storage System (BESS) known as the Northern Battery. And later this year construction will begin on Potentia's 225 MW Emeroo BESS about 15 km northeast of Port Augusta, co-located with the Bungala Solar Farm.
More major renewable energy projects are proposed, including stage 3 of the Lincoln Gap Wind Farm and associated BESS. In combination, these projects represent an estimated $2.5 billion in capital investment, delivering 1,082 Megawatts in total renewable energy generation capacity and total large scale battery energy storage system (BESS) capacity of 615 Megawatts.
As put by Peter Malinauskas
It's appropriate that this initiative is based on the site of the former Northern Power Station, whose waste products will now play a key part in the industrial renewal of the Upper Spencer Gulf and the transition to a low-carbon economy.
Coupled with green iron and steel in Whyalla, and critical metals in Port Pirie, this project is paving the way for huge opportunities for the Upper Spencer Gulf and South Australia.
It will help South Australia meet its booming demand for building products used in homes, businesses and industry, while providing sovereign capability and supply chain resilience.
SA is building – and the state needs to produce the materials to keep up the pace. This project will help realise that ambition, while reaffirming the Upper Spencer Gulf's long-term prospects as a hub for energy and industry.
As put by Hallett Group CEO Kane Salisbury
Hallett Group are grateful to both State and Federal governments for their support of our Green Cement Transformation project.
The loan announced by Premier Malinauskas today will ensure that Hallett accelerates the delivery of this large-scale project to meet the rapidly growing demand for low carbon cement materials for the South Australian Mining and Construction industries.
Hallett have worked diligently for 10 years to develop solutions to challenging problems, and we are delighted to now implement world leading technology that provides a great product for our customers and great outcomes for our community and the environment.
As a proud, independent South Australian owned and operated business, we are incredibly excited to be building this facility in Port Augusta, and we are deeply committed to the success of the upper spencer gulf region and our great state.