Papua to power Queensland

Queensland signed a multi-billion dollar agreement to connect with Papua New Guinea’s hydro-power pipeline.

The two governments, in cooperation with energy firm Origin and PNG Energy Developments, will support the development of the Purari Hydro Resource in PNG's Gulf province.

The project would create thousands of jobs and provide low carbon baseload electricity to PNG, north and far north Queensland, and Australia’s National Electricity Market.

Queensland premier Anna Bligh has told parliament the project could provide huge amounts of green energy to Queensland by 2020.

She says for the scheme to be viable PNG needs a 'baseload' customer for the power "Under this partnership, Queensland looks to become that baseload customer," she said.

"Put simply what that means is that if it is successful this project will be a massive win/win for PNG and Queensland opening up new opportunities for all of us."

"The PNG Government is proud of achieving this milestone where the governments of Queensland and PNG as well as the private sector can come together in this strategic partnership to develop such an important project,” said PNG Deputy Prime Minister and Minister for Works and Transport, the Honourable Don Pomb Polye.

"The PNG Government is happy for the PNG Sustainable Development Program and Origin to partner with our two States in realising our potential," he added.

PNG EDL, a 50:50 joint venture between Origin and PNG Sustainable Development Program Ltd, is evaluating the hydro-electric potential of the Purari Hydro Resource at Wabo in the Gulf Province of PNG. Capturing the power of the existing river flows, the development under consideration would have the capacity to generate approximately 1800 MW of renewable baseload electricity.

The proposed project would provide a reliable source of power for remote villages and rural communities in PNG and transform the area's economic development prospects. It would provide better access to the Gulf Province, creating a focal point for provision of basic health and education services and a range of opportunities for local communities.

Electricity would also be exported using leading-edge transmission technology via Weipa to join the national electricity grid at Townsville.

Origin Managing Director, Mr Grant King said the ongoing assessment of the project was consistent with Origin's pursuit of a portfolio of renewable energy opportunities in Australia and select offshore markets. The company is familiar with PNG and Origin’s LPG gas supply business has been operating in PNG for 30 years.

This project has the potential not only to open up vast employment and economic opportunities for both PNG and Queensland, but also to transform Australia’s potential to meet its carbon emissions goals at reasonable cost.

"This would be the first project to deliver year-round baseload renewable energy into mainland Australia," said Mr King. He also pointed out that it will help Australia meet its carbon emission goals at a reasonable cost.

A comprehensive feasibility study of environmental, sociological and engineering aspects is expected to be completed in 2012.

"The joint venture will ensure that recognised international environmental and social standards are followed during the feasibility study of the project. In addition, the project will undertake extensive consultation with communities and all levels of government in both Queensland and PNG," said Mr King.

The joint venture will be guided by international environmental and social standards including those endorsed by the Australian and PNG governments, the International Finance Corporation, the World Commission on Dams and the International Hydropower Association.

The project builds on Origin's existing portfolio of renewable developments and options including wind, geothermal and solar and the company's experience with hydro technologies through its interest in New Zealand’s Contact Energy.