The South Australian government has approved a AUD12m (US$7.9m) concessional loan to support a fly ash-to-cement project at the former Port Augusta coal-fired power station, aimed at converting up to 20Mt of legacy fly ash into low-carbon cementitious material.
The project will be developed by Hallett Group at the long-vacant power station site, which closed in 2016. Construction is expected to begin before the end of 2026, creating around 150 jobs during the build phase and approximately 50 permanent positions once operational.
According to the South Australian government, the project will help address a shortage of cement and concrete supply in the state while supporting industrial redevelopment in the Upper Spencer Gulf region. The facility is expected to process fly ash from the former Northern Power Station ash dam, with additional material potentially sourced from industrial by-products at Port Pirie.
Premier Peter Malinauskas said the technology could deliver a carbon reduction of up to 60 per cent compared with conventional cement production, while effectively doubling South Australia’s cement output capacity.
The development follows earlier proposals to remediate fly ash at Port Augusta, where residents have long raised concerns about airborne ash following demolition of the power station in 2018.
