Snowy Hydro Defends Diesel Use at Kurri Kurri Amid Gas Pipeline Delays

Snowy Hydro, the federal government-owned energy giant, is downplaying concerns over its plans to use diesel fuel at the controversial Kurri Kurri Hunter Power Project (HPP). The company clarified that only one of the plant's generators would run on diesel, and this would occur only during the testing and commissioning phase in 2025. This comes despite their request to the New South Wales planning department for permission to run both gas turbines on diesel for up to 1,100 hours that year.

The $750 million project, funded by the federal Labor government, was initially promoted as “hydrogen-ready.” However, the project has faced increasing criticism for its reliance on fossil fuels, especially since diesel will play a larger role while gas infrastructure is completed.

The primary delay stems from the plant’s location, which sits beyond the Sydney-Newcastle gas trunkline. As a result, Snowy Hydro has had to build a 21-kilometer gas pipeline connection, along with on-site gas storage. While this infrastructure is essential for the plant to run on gas, it won’t be ready until March 2025, months after the plant is expected to begin operations in December 2024.

Snowy’s recent planning amendment suggests the possibility of significant diesel usage in the first year, potentially increasing the plant’s emissions by up to 80%. However, in a statement, Snowy Hydro emphasized that it does not expect the plant to run entirely on diesel and that gas infrastructure delays are beyond its control. The amendment was described as part of "contingency planning" in case of further setbacks.

Once fully operational, the Hunter Power Project is expected to primarily use gas, with diesel reserved as a backup. Snowy Hydro insists that gas is critical for meeting peak energy demand and supporting Australia's transition to renewable energy. The company's goal is to ensure that the power station remains functional, even in the event of further delays to the gas pipeline or project commissioning.

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With its commitment to renewable energy, Snowy Hydro continues to navigate the challenges of transitioning from fossil fuels, while emphasizing the importance of reliable gas infrastructure in supporting Australia’s future energy needs.