Fourfold power investment return
Copperstring ‘state’s best bet’
EVERY dollar invested in the Copperstring 2.0 power transmission project in north Queensland is forecast to deliver $4.54 in benefits.
Energy consultant ACIL Allen’s finding, which far outstrips other funded projects such as the Inland Rail, Cross River Rail and Western Sydney Airport, comes as state and federal energy ministers Anthony Lynham and Angus Taylor show rare cross-party unity to back Copperstring.
The ministers provided videos of support to a Townsville Enterprise webinar last week.
Copperstring 2.0 is a proposed 1100km high-voltage transmission network that would integrate the North West Minerals Province at Mount Isa into the national transmission grid via connection near Townsville.
Its proponents say CopperString would provide cheaper, more flexible electricity supply and prompt investments in minerals production, industrial manufacturing and agriculture, in turn boosting exports from the Port of Townsville.
Copperstring director Joseph O’brien said ACIL Allen estimated the project’s benefitcost ratio (BCR) at 4.54, with total project net benefits of $9.2bn, using a 7 per cent discount rate.
Mr O’brien said investments totalling more than $20bn had been made with much lower BCRS, including Inland Rail (1.1), Brisbane’s Cross River Rail (1.21) and Western Sydney Airport (0.9).
“It is clear that Queensland’s best bet to repower the economy is backing the North West Minerals Province and Townsville’s industrial manufacturing sector with major infrastructure investment such as Copperstring,” he said.
“By providing access to cheaper and more flexible electricity supply, the CopperString transmission line will be a catalyst for the increased production of mineral resources that are not economically feasible and likely to remain in the ground if we do nothing and are stuck with expensive energy.”
The ACIL Allen report identified that Copperstring’s key benefits were efficiency benefits of electricity generation, principally associated with lower fuel and variable operating costs per unit of electricity; additional electricity generation, including increased production of renewable energy; reduced carbon emissions; increased mineral production; and increased employment and prosperity for Queensland.
Previous studies have found connecting the NWMP to the National Electricity Market would sustain jobs and income for decades with aggregate growth in minerals production of $154bn over 30 years from a known resource inventory of $680bn.
ACIL Allen also forecasts to 2050: a $139.4bn aggregate increase in gross state product; a $54.3bn aggregate increase in real income; and 3560 fulltime-equivalent jobs.
Mr O’brien said these results highlighted the importance of continued support from the state and federal governments to realise employment and economic growth opportunity in the NWMP and Townsville industrial zone.
He said Copperstring’s immediate priorities were to sign an implementation agreement with the state government and to secure financing support from the federal government and Northern Australia Infrastructure Facility.
Copperstring aimed to start a three-year construction program mid next year.