The Illawarra Business Chamber has today welcomed the confirmation of leasing arrangements for the Port Kembla Gas Terminal (PKGT) and the pursuit of a dual fuel power station as a significant step towards energy security for the state and economic benefit for the region.

This morning, Australian Industrial Energy (AIE) and NSW Ports announced the signing of a 10-25-year leasing agreement, which will allow for PHGT construction works to commence and be operational in 24 months.

AIE also announced that it is pursuing a dual fuel - LNG - Hydrogen 800MW power station; designed to be powered by gas and able to transition to hydrogen as industry scale production comes online.

“This is excellent news for our region and paves the way for AIE to pursue commercial arrangements and proceed with their investment in coming months, said Adam Zarth, Executive Director of the Illawarra Business Chamber.

“Local businesses look set to receive a welcome boost, with up to $76 million in subcontracts to be awarded and 130 to 150 jobs created during construction.”

“It is pleasing to see the diversification of uses for Port Kembla. The Chamber has actively supported and encouraged this investment.”

“Through our members we know that the rising costs of energy are impacting their bottom line and opportunities for growth. AIE’s prospective supply of 75 percent of the state’s energy requirements will put significant downward pressure on prices.”

“The opportunity to leverage and complement investment in hydrogen production gives rise to consideration of Port Kembla as the state’s future energy hub and, as a result, significant industrial growth into the future,” said Mr Zarth.

Media Contact: James Newton (0424 254 281)