Iron Road water supply project paved with government funding

Iron Road (ASX:IRD) has welcomed a commitment from the federal government to provide $65 million to investigate and progress planning for Northern Water.

Northern Water is a strategic objective to deliver desalinated water to support renewable industries and underpin the development and growth of critical mineral resources in South Australia.

The investment from the Australian government is a partnership with both the South Australian government and industry to jointly fund a $230 million package of essential pre-construction activities, prior to making a final investment decision.

Early analysis shows that the project  could unlock $5 billion in investment and lift South Australia’s gross domestic product by $150 billion over its lifetime to 2053.

During that time, it’s expected to create 4,200 jobs in resources, renewables, and the net zero transformation on average each year. The Northern Water supply project could see the construction of a new 260 megalitre per day seawater desalination plant at Cape Hardy and about 600km of pipeline to the Far North of South Australia.

Northern Water separately advises more than nine months of work has now been undertaken in collecting and analysing data from the Cape Hardy marine environment to inform the design and assessment of the proposed 260ML/day desalination plant.

Throughout April and May 2024, the company provided continued site access to Northern Water and its contractors for the purpose of intertidal surveys. Iron Road advises it has received its first option fee instalments and related payments from Northern Water totalling $315,000.

The instalments and payments are in accordance with a previously disclosed executed option deeds and a licence agreement.

The option is expected to be exercised by Northern Water by 31 December 2024, however, this may be extended by a further three months. All option fee instalments will be netted off the land acquisition value of circa $3.33 million at the exercising of the option.

Meanwhile, on 21 May 2024 Iron Road announced the company and Amp Energy have executed a series of transaction documents to facilitate the development of the Cape Hardy Advanced Fuels project following a 12-month exclusivity period.

The company has highlighted the strategic and large-scale nature of this flagship green fuels project – fuels that will be critical to the global energy transition and achieving net zero targets.

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Written By Adam Orlando Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.