The Morrison Government has awarded $30 million to support early works on Australian Industrial Powers (AIP) Port Kembla gas-fired power station as it progresses to Final Investment Decision.
The project will play a crucial role in reducing market volatility risks in NSW by supporting reliable electricity supply and keeping prices low.
Investment in reliable supply is a critical need, with AEMO forecasting that up to 19,000 megawatts of dispatchable capacity, like gas, is required across the National Electricity Market to support record growth of renewables.
The Government will continue to work with AIP to assess the project for underwriting support through the Underwriting New Generation Investments (UNGI) program.
Progressing the AIP gas power station will also support the development of the Port Kembla import terminal, providing a key source for imported gas to increase supply.
The construction of the terminal and power station will together create around 850 direct jobs, and many more indirect jobs.
This is what the Governments gas-fired recovery is about - helping Australia bounce back strongly from the COVID-19 recession, Minister for Energy and Emissions Reduction Angus Taylor said.
New gas supply and generation will help re-establish a strong economy and make energy more affordable for families and businesses, while complementing the world-leading levels of renewables in Australia.
Gas supports jobs in our important energy intensive industries that are the lifeblood of our economy and our regions.
Gas is a critical enabler of Australias economy and helps to support our manufacturing sector that has grown since the Government initiated the gas-fired recovery to employ over 1 million Australians.
Our gas-fired recovery, fair deal on energy and Modern Manufacturing Strategy will keep delivering for Australian families, businesses and manufacturers.