The Queensland Government has announced it is ‘closely examining all options’ on the future of the state’s Tugun Desalination Plant  in a bid to save taxpayer losses on the $1.2 billion project.

 

“It doesn’t operate to its full capacity and keeping it idle is costing millions. The operating costs of the plant this financial year to the end of April has been $14.2 million,” State Minister for Energy and Water Supply Mark McArdle said.

 

“Whilst operating it in “hot standby” mode saves about $10 million per annum, compared to continuous operation at one third capacity, it also creates additional asset risks as the plant was not designed to go through frequent stop/start cycles.”

 

“I have therefore requested a review and a report on the best options for the operation of the desalination plant. This review will fully evaluate how best to use the efficiency and effectiveness of the plant in the short to long term.”

 

In 2004 the Gold Coast City Council planned for a 50 megalitre per day desalination plant at Tugun to counter water supply shortages on the Gold Coast. The Beattie government almost tripled the scale to 125 megalitres per day and the plant is operated under an alliance between Seqwater, Veolia Water Australia and John Holland Pty Ltd.