Environment

Port Augusta to become national hub for green cement with $200 million transformation project

A former coal power station in Port Augusta is set to become a cornerstone of South Australia’s low-carbon future, with a new green cement project that will transform industrial waste into cleaner building materials and create jobs in the Upper Spencer Gulf.

Image: Alinta Energy via Awesome Adelaide

A former coal-fired power station is set to play a central role in South Australia’s low-carbon future, with the SA Government backing a major green cement project in Port Augusta.

The State Government has announced a $12 million loan to support Hallett Group’s Green Cement Transformation Project, alongside a $20 million grant from the Federal Labor Government. Together, the funding will help establish what is being positioned as a national hub for green cement production, anchored in the Upper Spencer Gulf.

The $200 million project will be delivered on the site of the former Northern Power Station, transforming industrial waste into low-carbon cement alternatives and signalling a new chapter of industrial renewal for the region. Waste by-products from the Northern Power Station’s ash dam and the Nyrstar Port Pirie smelter will be repurposed as supplementary cementitious materials, or SCMs, including flyash and slag.

These materials can partially replace traditional clinker in cement production, increasing strength and durability while reducing carbon dioxide emissions by up to 30 per cent. Two infrastructure hubs are planned as part of the project, one in Port Augusta and another in Port Adelaide, creating a supply chain that supports South Australia’s growing construction and infrastructure needs.

Premier Peter Malinauskas said the project reflects a deliberate shift toward low-carbon industry while building on the region’s industrial legacy.

“It’s appropriate that this initiative is based on the site of the former Northern Power Station, whose waste products will now play a key part in the industrial renewal of the Upper Spencer Gulf and the transition to a low-carbon economy,” he said.

Mr Malinauskas said the development would also help meet the state’s rising demand for building materials, while strengthening sovereign manufacturing capability and supply chain resilience.

“SA is building, and the state needs to produce the materials to keep up the pace. This project will help realise that ambition, while reaffirming the Upper Spencer Gulf’s long-term prospects as a hub for energy and industry,” he said.

Hallett Group CEO Kane Salisbury said the funding support would allow the company to accelerate delivery of the project to meet demand from South Australia’s mining and construction sectors.

“Hallett Group are grateful to both State and Federal governments for their support of our Green Cement Transformation Project,” Mr Salisbury said. “This backing allows us to fast-track world-leading technology that delivers real environmental benefits while supporting local industry.”

He said the company’s work over the past decade had focused on solving complex industrial challenges while delivering positive outcomes for communities and the environment.

The project is expected to create around 150 jobs during construction, with approximately 50 ongoing roles once operational. Beyond cement production, it is also anticipated to catalyse further activity in areas such as carbon dioxide reuse, synthetic fuels and mineral recovery.

With construction due to begin soon, and major renewable energy developments already underway, Port Augusta is increasingly being positioned as a cornerstone of South Australia’s clean energy and advanced manufacturing future.

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