BY DAKOTA TAIT
The Hunter Business Chamber has welcomed yesterday's decision by the Independent Planning Commission to approve Santos' Narrabri Gas Project.
CEO Bob Hawes says local industry needed reliable and affordable energy supplied from gas and thermal sources until the renewable energy supply could meet the demand.
"We've got a situation here in the Hunter where the industry have high power usage," Mr Hawes said. "They rely on a source of power that's dispatchable and available 24/7, and we're not quite there with renewables yet."
A Business NSW report from last December suggested an impending energy shortage as well as a tripling in the price of gas has punished many businesses for a wider failure to make use of the state's rich gas supply.
Mr Hawes says work on the project should begin immediately to ensure the state does not encounter a predicted shortfall in five years time.
“Gas is a complementary energy source to renewables," Mr Hawes said. "Securing our gas supply will help support reliable and affordable power as the energy market continues to evolve and develop emerging technologies like hydrogen."
Mr Hawes rejected claims made by NSW Energy and Environment Minister Matt Kean that gas lacked long-term viability and that the Narrabri project was a "gamble".
"We haven't built the bridge properly yet," Mr Hawes said. "When we consider the amount of coal-fired power that is going to be turned off over the next twenty years, over 7000 megawatts of that is going to be in the Hunter, and we're not seeing replacement projects that can supply the same sort of power."
“The Hunter region is ideally placed to continue as a energy hub and powerhouse and building the bridge from where we are now to a secure energy future dominated by renewables will be enormously assisted by firming abundant, affordable and accessible gas supplies."
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| Image credit: reneweconomy.com.au |
