A pumped-hydro facility at Lake Lyell could be one step closer, following the allocation of an $11 million grant to Energy Australia by the State Government.
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The grant was awarded under the State Government's Pumped Hydro Recoverable program.
According to Energy Australia, The funding will go towards investigations of the viability of a facility at Lake Lyell.
"This is an exciting next step for the Lake Lyell pumped hydro project and will allow us to undertake important engineering and design activities to understand the project's feasibility," Energy Australia's Head of Portfolio Development, Dan Nugent said.
Members of the Concerned Local Citizens group (CLC) have again expressed their concerns of the potential environmental impact the project could have it were to go ahead.
"Whilst it is acknowledged that pumped hydro is needed in the current climate situation, as is pointed out by Professor Andrew Blakers (Professor of Engineering at the Australian National University), that there are sufficient Class-A sights that allows opportunity for well thought out and strategic selection of the best options," CLC said in a joint statement.
"Lake Lyell Pumped Hydro is not one classified as an "A-class" site and in fact is not even listed in the top 4000 potential sites identified in Australia."
The group said that the number of permanent jobs that will be created as a result of the facility isn't justifiable for the potentially devastating environmental impacts.
"The scheme will provide, on Energy Australia's assessment, 15 permanent jobs and an unknown short-term benefit of jobs during construction. Against that absurdly low jobs number Lithgow will forever lose these precious assets, This coming tragedy is a ludicrous betrayal of the people of Lithgow." CLC said.
"The irreplaceable Mt Walker will be destroyed permanently and the pristine Lake Lyell will be, at the very least, severely impacted with its conversion to a tidal lake and the creation of large areas of mud flats at variable times without notice,"
According to Energy Australia's Head of Portfolio Development, Dan Nugent the project was "still in the very early days" with plenty of opportunities for locals or anyone with an interest in the project to provide input into planning and design processes.
"Lake Lyell is a popular recreational and tourism spot, and its environmental significance will be considered as part of the project's planning process," he said.
"Extensive technical studies will be done to look at ways to minimise environmental and social impacts, we will also be looking at how to share project benefits with the community."
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