Treasurer John Lenders today welcomed plans by Australian energy company Santos to develop a new gas fired power station near Orford, approximately 20 kilometres north of Port Fairy.
Mr Lenders said the company was planning to supply 500 megawatts in the $800 million first stage of the Shaw River project, potentially growing to 1500 megawatts by 2020 which would supply energy to around 2 million homes.
“I welcome this proposed investment in our energy system which is evidence of Victoria’s healthy investment climate despite the challenges facing the global economy,” Mr Lenders said.
“The first stage of this project alone would inject $800 million into our economy and deliver up to 730 new jobs during the construction phase, mainly in Victoria’s south west.”
"The first stage of this project alone would inject $800 million into our economy and deliver up to 730 new jobs."
Mr Lenders said in addition to the Shaw River project the Victorian government had recently helped to secure over $3.2 billion worth of major investments in our energy sector, creating up to 1900 jobs during the construction phases including:
• the $640 million Origin Energy natural gas power station near Mortlake creating up to 200 jobs;
• the $1.4 billion ExxonMobil and BHP Billiton oil and natural gas project in the Gippsland Basin creating up to 100 jobs and providing ongoing employment for 1000 existing ExxonMobil employees;
• the $750 million HRL clean coal power station in the Latrobe Valley creating 300 jobs;
• and the $420 million Solar Systems solar power plant in Victoria’s north west creating 1300 jobs.
Energy Minster Peter Batchelor said the new power station would provide extra baseload electricity for the state’s businesses and homes using low emission natural gas.
“The natural gas fired power station would move Victoria’s energy mix towards cleaner energy, emitting up to 70 per cent less greenhouse gas than brown coal,” Mr Batchelor said.
“This power station would help to deliver on our election commitment to reduce greenhouse gas emissions across Victoria’s economy by 60 per cent of 2000 levels by 2050.
“We are now responding to that challenge by developing, and delivering, a comprehensive climate change package to encourage low-emission technologies, renewable energy, energy efficiency and support for a national emissions trading scheme.
“This announcement comes on top of our Government’s recent signing of a contract to facilitate the $750 million HRL lower-emission power station near Loy Yang B – the first new coal-fired power station to be built in the Latrobe Valley for 12 years.”
The Brumby Government contributed $50 million to the HRL project through its Victoria’s Energy Technology Innovation Strategy (ETIS).