State govt opts for second desal plant costing $955m

The state government has sprung a surprise by selecting a second desalination plant as Western Australia's next major water source, instead of developing the Yaragadee underground aquifer in the South West.

The Yaragadee aquifer was the Water Corporation's preferred option but attracted strident opposition from environmental and farming groups.

The desalination plant, to be located at Binningup, 30 km north of Bunbury, will cost $640 million to build and a further $315 million will have to be spent integrating it with the state's water supply system.

Last week's State Budget allocated $750 million over the next four years for a new water source. An additional $205 million will be allocated in the 2011-12 financial year.

The project is due to come on line by 2011.

The plant will supply 45 gigalitres of water each year, the same output at the $387 million Kwinana desalination plant which was officially opened earlier this year, with water expected to be distributed to metropolitan Perth, the Mid West and the Goldfields through the Kalgoorlie pipeline.

The Premier said the site would undergo a two-year environmental assessment and approval process, but he was optimistic the project would finish ahead of schedule as fewer environmental issues would confront this project.

The water corporation will call for tenders for electricity providers, with all energy for the 23 megawatt facility to be from renewable sources.

Premier Alan Carpenter told reporters today that he and the Cabinet had decided against the Yaragadee proposal as the site was still reliant on rainfall, which could in turn be influenced by climate change.

The rate of rainfall had changed dramatically, and put stress on the earlier plans, he said.

"We also considered the growing needs of the South West," he told reporters.

While refusing to rule out the possibility of using the aquifer altogether, saying a rising South West population could have need of it in future, he said South West water usage would have to reach 100 GL before he considered the option.

Opposition Leader Paul Omodei said Mr Carpenter had bowed to pressure from the community, environmental groups and the Liberal Party by announcing another desalination plant instead of the Yarragadee proposal.

"All the representations from the community, particularly the people of the South West, seemed to have reached a political nerve at last," Mr Omodei said.

"The Carpenter Government has ignored the Liberal position of using Wellington Dam as an alternative water source, probably for the very reason that it is a Liberal position.

"The building of a second desalination plant is a less energy efficient and far more costly option, but at least it is a better option than the Yarragadee."

Shadow Environment Minister Dr Steve Thomas said the South West community would be pleased with the Government's decision, and would closely watch the development of the new desalination plant to ensure environmental concerns were covered.

Premier Alan Carpenter's announcement is pasted below:

Premier Alan Carpenter has announced that a second seawater desalination plant powered by renewable energy will be Western Australia's next major water source.

In making the announcement, Mr Carpenter shelved Water Corporation plans to utilise the South West Yarragadee aquifer for the integrated water supply system.

"The internationally acclaimed wind-powered Kwinana seawater desalination plant has demonstrated that large quantities of water from an unlimited ocean supply can be provided using a clean and green process," the Premier said.

"Unlike SW Yarragadee and traditional water sources, it is also climate independent.

"That is why the State Government has decided that the next major water source can be provided by the seawater desalination process.

"I have asked the Water Corporation to immediately start developing the State's second major seawater desalination plant."

The proposed site for a second desalination plant is at a Water Corporation wastewater treatment facility on Taranto Road north of Binningup - adjacent to a disused limestone quarry. It is expected to have minimal environmental and visual impact on the area, but will be subject to the usual approval processes.

The new plant will provide at least 45 gigalitres of water a year into the integrated water supply system by the end of 2011, with potential to increase to 100 gigalitres. Similar to the Kwinana plant, it will be powered by renewable energy.

The Water Corporation has advised that the estimated cost of building the second desalination plant will be $640million. An additional $315million will be required for integrating it into the water supply system.

Last week's State Budget allocated $750million over the next four years for a new water source. An additional $205million will be allocated in the 2011-12 financial year.

"We can no longer rely on traditional, seasonal climate patterns and rainfall," the Premier said.

"Seawater desalination is clearly the best long term feasible and practical option for our State, along with more water recycling initiatives.

"When you compare the seawater desalination process to transporting water from the Kimberley, there is no comparison.

"The cost of water from the desalination process is at least three times cheaper than the Kimberley option and it comes from an unlimited source in the Indian Ocean.

"Put another way, for the cost of building a pipeline from the Kimberley, we could build at least 12 desalination plants and get three times more water at one third of the price per kilolitre."

The Premier said that while the SW Yarragadee aquifer had effectively received environmental approval, it remained a source that was still reliant on climate and rainfall.

"More work therefore needs to be done on assessing the full impact of climate change and declining rainfall on the south west and on the SW Yarragadee aquifer," Mr Carpenter said.

The Premier said that while desalinating the Wellington Dam was a live option, it was still a long way off being feasible.

He said the Government was also actively researching a major aquifer recharge recycling project north of Perth, which had the potential to yield an extra 25 gigalitres.

"The State Government is securing WA's future water supplies through a diverse range of strategies including developing new water sources, dramatically increasing water recycling, maintaining and expanding demand management initiatives and encouraging water trading.

"This has resulted in Western Australia being recognised as the nation's leader in water resource management to the extent that Perth is the only major capital city in Australia where people can use sprinklers through summer - despite our driest year on record last year."