With the approval of this State Significant Infrastructure project, Hunter Water will lead the delivery with construction expected to begin in late 2024.
The $530 million investment in building a permanent desalination plant will significantly enhance the region’s drought preparedness and response capabilities.
As the largest regional economy in New South Wales, the Lower Hunter is particularly vulnerable to dry seasons and drought. Advancing this project will secure the region’s critical water supply, supporting continued prosperity and growth.
The desalination plant is a key component of the Lower Hunter Water Security Plan, a whole-of-government strategy aimed at ensuring the region has a resilient and sustainable water future. This plan is supported by the community as it positively contributes to regional health and economic prosperity.
Upon completion, the desalination plant will provide up to 30 million litres of rainfall-independent drinking water per day to the Lower Hunter, meeting approximately 15 percent of the region's average daily demand.
In January 2024, Hunter Water submitted a Modification Report to the NSW Department of Planning, Housing, and Infrastructure (DPHI) to change from a drought response plant, to a permanent desalination plant.
The NSW Government acknowledged the proactive approach and approved this modification to
ensure the timely delivery of this vital infrastructure.
Consistent with the NSW Government’s Net Zero goals, the Plant will be powered by renewable energy.
The Plant will be funded through Hunter Water customer bills and included in Hunter Water’s pricing submission to the Independent Pricing and Regulatory Tribunal (IPART). The new pricing structure will take effect from 1 July 2025.
This direct reinvestment into the Hunter region is aimed at ensuring the resilience and reliability of water services for the community
To learn more about the Belmont Desalination Plant, head to www.hunterwater.com.au/desal
Minister for Planning and Public Spaces Paul Scully said:
“Water security is a long-term challenge for NSW and providing a secure water system is the foundation of any modern city.
“Locking in a drinking water supply that will support the future of the Lower Hunter for years to come is a win for the community and will support a thriving community.”
Minister for the Hunter Yasmin Catley said:
“This is a great step towards securing a reliable, sustainable water source for the Lower Hunter.
“This plan should give our community peace of mind that the NSW Government is taking the matter of water security incredibly seriously.
“Construction is set to take approximately four years, providing jobs to locals throughout that
process.”
Minister for Water Rose Jackson said:
“The planning approval is a positive and significant step towards ensuring water security for the Lower Hunter.
"Water security is fundamental to setting up the Lower Hunter for a sustainable, resilient, and prosperous future.
"One of the key advantages of desalination is that it's a rainfall-independent source of water, which is safe and reliable regardless of changes in weather or climate. With planning approval modification finalised to facilitate the revised design and operational proposal, Hunter Water can commence the construction phase, and take another step towards meeting the evolving needs of the region in a changing climate.
“There has been strong community support for improving water security in the region. The Belmont
Desalination Plant works towards addressing this, while also taking pressure off the region's dams
by diversifying water sources.
“Community engagement has been a vital part of this process, it is so important to ensure the views of the community and Hunter Water customers and have been integrated into the submission to IPART.”
Hunter Water Managing Director Darren Cleary said:
“The Belmont Desalination Plant is a priority project for Hunter Water to deliver.
"We can't rely on rain alone anymore. Our region's water storages can fall from typical operating levels to critical levels in less than three years. Should a severe drought continue beyond three years, our region could run out of water.
"As a key action in the Lower Hunter Water Security Plan, the Belmont Desalination Plant will be an enduring, integrated, and vital part of the Lower Hunter's water supply system.
"The Belmont Desalination Plant will also assist us in managing the region’s water security while storage levels at Grahamstown Dam are reduced as we address recently identified dam safety issues.
“We understand the rising costs of living are weighing on our customers and we don’t take an increase to our customers’ bills lightly.
“We have strengthened our overall support for our customers, with a range of assistance programs and support services available to help them pay their bill. This includes payment extensions and flexible payment options such as our bill smoothing program, Easy Pay."
