The South Australian government has earmarked A$100 million for a feasibility study aimed at determining the viability of constructing a desalination plant on Eyre Peninsula. Mining giant BHP (ASX:BHP) will also contribute A$77 million to the study. The project is estimated to cost more than A$5 billion and support 4,200 jobs.
Premier Peter Malinauskas said the project would be the biggest infrastructure investment in the state's history.
"We have spent a lot of money on hospitals, we have spent a lot of money on roads, but never before have we contemplated a piece of infrastructure that is exclusively for the economic benefit of our state," he said.
The envisaged 260 megalitre desalination facility at Cape Hardy, along with a 600-kilometre pipeline network, promises to provide a sustainable water supply essential for industrial operations. BHP's asset president for copper in South Australia, Anna Wiley, affirmed the project's alignment with the company's growth aspirations and underscored its pivotal role in meeting burgeoning global demand for copper.
Catalysing hydrogen industry
The initiative holds promise for catalysing South Australia's nascent hydrogen industry, complementing the state's strategic advantages in renewable energy and mineral resources.
Projections indicate that the project could yield A$5.2 billion in annual economic activity and generate A$9 billion in royalties by 2050, positioning South Australia to capitalize on the green transition.
Premier Malinauskas underscored the project's strategic significance in unlocking opportunities for sustainable economic development while mitigating environmental challenges.
Notably, he emphasized that taxpayer funds would be safeguarded through commercial agreements with project stakeholders, minimising the risk of financial burden on consumers.