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28 Jan 2026

$200m Green Cement Project to Transform Former Port Augusta Power Station Site

$200m Green Cement Project to Transform Former Port Augusta Power Station Site
Image credit: Hallett Group

The South Australian Government has backed a major new manufacturing initiative in Port Augusta, supporting the development of a $200‑million Green Cement Transformation Project that will repurpose the former Northern Power Station site into a national hub for low‑carbon materials production.

The state will provide a $12‑million loan to Hallett Group, which is advancing the project as part of a broader transition toward decarbonised construction materials. The initiative adds to an estimated $2.5 billion in energy‑related capital investment delivered or planned for Port Augusta and the Upper Spencer Gulf since 2016.

“Hallett has worked diligently for 10 years to develop solutions to challenging problems, and we are delighted to now implement world-leading technology that provides a great product for our customers and great outcomes for our community and the environment,” said Hallett CEO Kane Salisbury.

“As a proud, independent South Australian owned and operated business, we are incredibly excited to be building this facility in Port Augusta, and we are deeply committed to the success of the Upper Spencer Gulf region and our great state.”

Repurposing Industrial By‑Products Into Low‑Carbon Cement

The project will establish two new hubs in Port Augusta and Port Adelaide, where industrial waste materials from the Northern Power Station ash dam and the Nyrstar Port Pirie smelter will be processed into green cement products.

The approach uses fly ash from Port Augusta’s legacy dam and slag from Nyrstar’s smelter as supplementary cementitious materials (SCMs). SCMs are known to improve cement durability and reduce emissions by up to 30 per cent compared with traditional cement production.

Approximately 150 jobs will be created during construction, with 50 ongoing roles expected once the facilities become operational.

Strengthening the Upper Spencer Gulf’s Emerging Clean‑Energy Economy

The green cement initiative is expected to support additional opportunities across the region, including:

• carbon dioxide reuse
• synthetic fuel development
• mineral recovery
• potential green lime manufacturing

The Federal Government has also provided $20 million through the Modern Manufacturing Initiative to support project delivery.

Supported by Major Renewables Investment Across the Region

Construction is set to begin within months on the 270‑megawatt Northern Battery energy storage system in Port Augusta. Later in the year, work will also commence on Potentia’s 225‑megawatt Emeroo BESS, co‑located with the Bungala Solar Farm.

Further proposals include Stage 3 of the Lincoln Gap Wind Farm and associated large‑scale battery infrastructure. Together, these projects total roughly 1,082 megawatts of renewable generation capacity and 615 megawatts of utility‑scale battery storage.

Source: Inside Construction

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