MAJOR PROJECT ASSESSMENT: Munmorah Gas Fired Power Station, Munmorah Director-General’s Environmental Assessment Report Section 75I of the Environmental Planning and Assessment Act 1979 July 2006 © Crown copyright 2006 Published July 2006 NSW Department of Planning www.planning.nsw.gov.au Disclaimer: While every reasonable effort has been made to ensure that this document is correct at the time of publication, the State of New South Wales, its agents and employees, disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document. ©NSW Government July 2006 Munmorah Gas Fired Power Station Director-General’s Environmental Assessment Report EXECUTIVE SUMMARY The Proponent (Delta Electricity) proposes to construct a 600 megawatt open-cycle gas turbine facility and gas pipeline which will connect the facility to the existing Sydney-Newcastle natural gas pipeline. The gas turbine facility would operate as a peak-load power station by providing electricity at short notice during periods of peak demand or as a ‘black start’ generator in the instance of a state-wide power station shutdown. It is anticipated that the project would cost $382 million and would employ approximately 100 people during construction. The site is Part Lot 61 DP1065038, located adjacent to the existing (coal-fired) Munmorah Power Station located off Scenic Drive at Munmorah in the central coast region of New South Wales. Land immediately surrounding the existing coal-fired power station and the site of the proposed gas-fired facility was established by the Proponent as a buffer area when the coal-fired plant was first constructed. Over time, land use planning has permitted residential development to encroach on the site, with the buffer area flanked on most sides by residential development The Proponent has split the project into three project components for the purposes of concept approval assessment. The first project component is for the construction and operation of the open-cycle gas turbine facility. Delta Electricity is seeking project approval for this component. The second project component is for the construction and operation of the natural gas pipeline and for this Delta Electricity is seeking concept approval so that further analysis and consultation regarding the final pipeline route can be undertaken. The third project component is for the subdivision of the existing site such that the new facility will be on its own site, operating under its own Environmental Protection License. The potential environmental planning implications of the project are several due to the environmental impacts typically associated with electricity generation and the close proximity of this site to residential areas. Concern has been raised by the community in relation to air quality impacts, noise impacts, quality of life and exposure to potential hazards. As a result, the Proponent has undertaken additional noise impact studies, prepared a submissions report addressing each of the concerns raised, and modified some components of the project such that additional consultation and investigation can be undertaken before final approval would be considered. On balance, the Department considers that the proposed Munmorah Gas Fired Power Station is a project that would be of benefit to the State of New South Wales. This is due to the combined benefits of increased electricity supply during periods of peak use and by providing emergency start capability to the electricity network in the event of a state-wide power station shutdown. It is the opinion of the Department that the environmental impacts identified by the Proponent and through community consultation can be effectively managed by the recommended conditions of approval. Overall, the proposed Munmorah Gas Fired Power Station project could be approved subject to the effective implementation of the Proponent’s Statement of Commitments and the Department’s recommended Instruments of Approval. i Munmorah Gas Fired Power Station Director-General’s Environmental Assessment Report ii Munmorah Gas Fired Power Station Director-General’s Environmental Assessment Report CONTENTS 1. BACKGROUND ...........................................................................................................................................1 1.1 Location.............................................................................................................................................1 1.2 Existing Site.......................................................................................................................................1 1.3 Surrounding Land Use ......................................................................................................................2 2. PROPOSED DEVELOPMENT.....................................................................................................................3 2.1 Project Description ............................................................................................................................3 2.2 Project Need......................................................................................................................................3 3. STATUTORY CONTEXT..............................................................................................................................5 3.1 Major Project .....................................................................................................................................5 3.2 Permissibility .....................................................................................................................................5 3.3 Environmental Planning Instruments.................................................................................................5 3.4 Minister’s Approval Power.................................................................................................................5 3.5 Nature of the Recommended Approval .............................................................................................5 4. CONSULTATION AND ISSUES RAISED....................................................................................................7 4.1 Introduction........................................................................................................................................7 4.2 Submissions from the Public.............................................................................................................7 4.3 Submissions from State Government................................................................................................7 4.4 Submissions from Local Government................................................................................................8 4.5 Submissions Report ..........................................................................................................................9 5. ASSESSMENT OF ENVIRONMENTAL IMPACTS....................................................................................11 5.1 Air Quality Impacts ..........................................................................................................................11 5.2 Noise Impacts..................................................................................................................................13 5.3 Potential Land-use Conflicts............................................................................................................15 5.4 Hazards and Risks Impacts.............................................................................................................15 6. CONCLUSION ...........................................................................................................................................17 7. RECOMMENDATION.................................................................................................................................19 APPENDIX A – RECOMMENDED CONDITIONS OF (CONCEPT) APPROVAL.................................................21 APPENDIX A – RECOMMENDED CONDITIONS OF (PROJECT) APPROVAL .................................................23 APPENDIX B – STATEMENT OF COMMITMENTS.............................................................................................25 APPENDIX D – SUBMISSIONS............................................................................................................................27 APPENDIX E – ENVIRONMENTAL ASSESSMENT ............................................................................................29 iii Munmorah Gas Fired Power Station Director-General’s Environmental Assessment Report iv Munmorah Gas Fired Power Station Director-General’s Environmental Assessment Report 1. BACKGROUND 1.1 Location Delta Electricity proposes to construct and operate a new gas-fired power station, and associated infrastructure, adjacent to the existing (coal-fired) Munmorah Power Station located off Scenic Drive at Munmorah in the central coast region of New South Wales (refer to Figure 1). The site is Part Lot 61 DP1065038. Figure 1: Site Location (reproduced from the Proponent’s Environmental Assessment) 1.2 Existing Site The project includes three components: the gas-fired power station; a natural gas pipeline; and subdivision of land. The site for the gas-fired power station is located within land currently owned by Delta Electricity to the west of the existing Munmorah Power Station. The land upon which power