Northern Water Project
2025 Policy Priority

SACOME reiterates its strong support for the Northern Water Project and calls for continued effort by the South Australian Government to bring it to development.

The Northern Water Project remains a critical enabler to growth of the South Australian resources sector and the South Australian Government’s hydrogen and green industry transition goals.

Completion of the Northern Water Project achieves supply of water as an input to industrial process in the Far North, facilitates further development of the Gawler Craton, plays a critical role in production of copper in the Far North, green iron/steel and hydrogen in the Upper Spencer Gulf and provides a new source of water for the Eastern Eyre Peninsula.

SACOME welcomes the strong support shown by the Commonwealth and State Governments, including the $100 million in equity contribution that formed part of the 2023-24 State Budget; and the $65 million in funding from the Commonwealth in the 2025-26 Federal Budget as part of the Future Made in Australia initiative.

SACOME also welcomes establishment of the Office for Northern Water Delivery by the South Australian Government as this initiative moves into the detailed planning, approvals and agreement-making phase preparatory to Final Investment Decision.

In 2024 management of the Northern Water Project moved from Infrastructure South Australia to the Department of Infrastructure and Transport (DIT). Final Investment Decision remains scheduled for mid 2026.

SACOME notes that the Final Investment Decision to proceed with construction of the Northern Water Project will rely on securing project approvals and agreements, encompassing extended consultation with traditional owners, landholders, and the community; comprehensive evaluation of environmental, engineering, and economic aspects of the project; and commercial negotiation for project delivery and water purchase.

Progress of the Northern Water Project to completion remains a key priority for SACOME and we will continue to engage at the State and Federal level to ensure continued bipartisan support as a 2025 Federal Election commitment.

Northern Water Project Timeline

May 2025, Office of Northern Water Delivery Dissolved

• The Minister for Energy and Mining announced that the Offices of Northern Water Delivery and Hydrogen Power are to be dissolved.
• The decision follows the lapse of an options deed for the purchase of land at Cape Hardy earlier in the month. The State Government is yet to make a final decision on the site of the plant, with Cape Hardy and Mullaquana Station both still under consideration.
• Minister Koutsantonis confirmed that the change does not represent a shift away from the project.

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April 2025, Cape Hardy Land Purchase Deal Lapses

• As reported in InDaily on 2 April 2025, Iron Road informed shareholders that it had been unable to reach terms with the Northern Water Project Delivery Office regarding a proposed extension to the parties’ options deed for the purchase of land at Cape Hardy.
• The State Government is yet to make a final decision on the site of the plant with Cape Hardy and Mullaquana Station both still in consideration.

November 2024, Office of Northern Water Connected to Department of Energy and Mining

• Following a review of the functions of the Office for Northern Water, responsibilities for procurement and pre-delivery, and stakeholder engagement, most appropriately remained under DIT.
• Remaining functions of the office relating to future offtake agreements and negotiations with potential partners would sit with the Department for Energy and Mining, which has established relationships with prospective offtakes including BHP.
• The Northern Water project is in a pre-final investment decision phase. 

October 2024, Requirements for Environmental Impact Assessment Released

• On 1 October 2024, the State Planning Commission released Assessment Requirements for an Environmental Impact Statement (EIS) for the Northern Water Project.
• The release follows Ministerial direction to prepare an EIS under section 131(25) of the Planning, Development and Infrastructure Act 2016 (PDI Act), which took place on 25 January 2024.
• On 28 October 2024, Acting Chief Executive of the Office of Northern Water Delivery, Matt Hardy resigns, citing split of project responsibilities between the Office of Northern Water Delivery and the Department for Infrastructure & Transport (DIT) as the reason.

August 2024, Geotechnical Investigation and Community Feedback

• Onshore and offshore Geotechnical investigation has begun at Cape Hardy.
• Community engagement a focus;  feedback sought indicates interest in workforce and job availability.
• A study commissioned by Northern Water to investigate the potential impact of the project on Snapper and King George Whiting completed.

July 2024, Establishment of The Office of Northern Water Delivery

• As published in the South Australian Government Gazette on 30 May 2024, the Governor has proclaimed the establishment of the Office of Northern Water Delivery (the ‘Office’), effective 1 July 2024.
• The Office is now attached to the Department for Infrastructure and Transport, and responsibility for the Office is designated to the Minister for Infrastructure and Transport.
• Up until 1 July 2024, matters concerning the Northern Water Project have mostly been within the care of Infrastructure SA, managed by Chief Executive Jeremy Conway.

June 2024 Federal Funding Update

• The Northern Water Project has been allocated an additional $65m as a 2024-25 Federal Budget measure and as part of the Albanese Government's Future Made in Australia policy (Media Release).
• This equates to joint funding of a $230 million package of work in partnership with the South Australian Government.

In May 2024, Northern Water announced the following:

• Geotechnical investigations (Geotech) had commenced to inform project design. These are mostly to be conducted within the project corridor or in road reserves, and are unlikely to affect road users. Expected to continue to the end of 2024.

• A surveying contractor will undertake a cadastral survey in late May 2024 with this work focusing on ground truthing of property boundary data.

• Release of this short 3D animation of Northern Water’s reference design.

• Northern Water has been collecting and analysing data from the Cape Hardy marine environment over the last nine months to inform the design and assessment of the proposed 260 ML/day sea water desalination plant.

• Launch of the first round of Northern Water Community Grants, with Northern Water seeking submissions focusing on local community capacity building and regional enhancement – see this link for further detail.

• Community feedback over the last few months of consultation has focused on the following issues/themes:

• Community Grants Program;
• Community’s desire to maintain access to the beach at Cape Hardy;
• Interest in the electricity and power supply / usage regarding the project; and
• Curiosity regarding the location and size of exclusion zones.

SACOME notes that the final decision to proceed with construction of the Northern Water Project will rely on gaining required project approvals and agreements, encompassing extended consultation with traditional owners, landholders, and the community; comprehensive evaluation of environmental, engineering, and economic aspects of the project; and commercial negotiation for project delivery and water purchase.

SACOME has worked collaboratively with the South Australian Government and its member companies to progress the Northern Water Project since its inception in 2020. SACOME reiterates its support for this project as a truly transformative economic development measure in the strongest terms.

Completion of the Northern Water Project achieves the supply of water as an input to industrial process in the Far North, facilitates further development of the Gawler Craton, plays a critical role in production of green steel and hydrogen in the Upper Spencer Gulf and provides a new source of water for the Eastern Eyre Peninsula.

​Ensuring that the Northern Water Project progresses to completion remains a key priority for SACOME.

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2024 Northern Water Project Briefing Note

The Northern Water Project remains a critical enabler to growth of the South Australian resources sector and the South Australian Government’s hydrogen and green industry transition goals. SACOME welcomes the strong support shown to date by the Commonwealth and State Governments, including the $100 million in equity contribution funding that formed part of the 2023 State Budget.
Ensuring that the Northern Water Project progresses to completion was a key priority for SACOME in 2024.

Northern Water Project Briefing Note
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