Northern Water desalination plan near Whyalla could add $3.3 billion a year to SA’s economy

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A major South Australian water project could inject billions of dollars into the state’s economy each year and support thousands of jobs, with new economic modelling revealing the potential scale of its long-term benefits.

The Northern Water Project has reached a significant milestone, with its Environmental Impact Statement (EIS) now open for public consultation, giving South Australians the opportunity to have their say on the proposed development.

The ambitious project would see a large-scale desalination plant constructed at Mullaquana Station, approximately 20 kilometres southwest of Whyalla, connected to around 400 kilometres of pipelines delivering a secure, climate-resilient water supply to the state’s Far North.

Economic modelling undertaken as part of the EIS estimates the project could boost South Australia’s economy by an average of $3.3 billion annually, while supporting approximately 2,000 full-time equivalent jobs each year between 2026 and 2062.

These benefits would be driven by expanded mining and industrial activity, along with the supply chains and businesses supporting those industries.

Minister for Energy and Mining Tom Koutsantonis said the project could provide greater economic certainty for regional communities.

“At a time when communities in the Upper Spencer Gulf and Far North are looking for greater economic certainty, projects like Northern Water have the potential to drive investment, support regional industries, and create long-term employment opportunities.”

The proposed water infrastructure could also help unlock South Australia’s critical mineral resources, supporting industries involved in the global transition towards lower-emissions technologies.

However, the project’s potential economic benefits are only one part of the assessment.

The newly released EIS examines the environmental, social and economic impacts of the development, including its potential effects on the Upper Spencer Gulf’s unique marine and coastal environment.

Investigations have also considered the varied landscapes along the proposed pipeline route, including coastal, mallee, arid and sandy environments, as well as cultural heritage significant to Barngala and Kokatha Traditional Owners.

“While modelling outlined in the EIS forecasts billions of dollars in additional economic activity and thousands of jobs supported across the state, protecting the environment is also a vital part of this project,” Mr Koutsantonis said.

“We recognise the importance of protecting the Upper Spencer Gulf’s unique marine and coastal environment, its biodiversity, and the communities and industries that depend on it.”

The project is subject to State and Commonwealth environmental assessment requirements, with the EIS combining both jurisdictions’ requirements into a single process.

As part of the consultation period, community drop-in sessions will be held in Whyalla, Port Augusta and Roxby Downs.

Residents will have the opportunity to speak directly with the project team, ask questions, learn more about the findings and understand how to make a formal submission.

“We know local communities have a deep connection to this region and valuable knowledge of its environment, and we want to ensure their voices are heard,” Mr Koutsantonis said.

Following the consultation period, a response document addressing the issues raised will be prepared and made publicly available.

The findings and community feedback will help inform the next stages of assessment and planning as the project progresses towards a Final Investment Decision.