UPDATED: Hunter Residents Alarmed by Foul Odour from Gas Plant Testing as EPA Launches Investigation

9 July 2025

UPDATE: Snowy Hydro provided a statement to the media which is located at the end of this article.

newy.com.au – A strong, acrid smell that spread through the Lower Hunter on 8 July 2025 has triggered widespread community concern and a formal investigation by the NSW Environment Protection Authority (EPA), after commissioning activities at Snowy Hydro’s new Hunter Power Station released visible smoke and a foul smell into the air.

Residents reported breathing difficulties, especially among children, federal member for the Hunter Dan Repacholi said “My office has been contacted by a number of concerned locals… about a foul smell and strong odour in the air,” Mr Repacholi wrote. He confirmed the source of the emissions was linked to turbine testing at the Kurri Kurri Gas Plant, and that Snowy Hydro had used diesel rather than gas during the ignition process.

The emissions occurred during what Snowy Hydro described as the “first fire” of one of the facility’s two turbines, a critical milestone in the station’s commissioning. The turbine was brought up to full power without being connected to the grid, resulting in the release of dense smoke and a noticeable odour. Snowy Hydro has since paused further testing.

Mr Repacholi said he has received assurances from Snowy Hydro that future commissioning will use gas only, now that the site’s gas infrastructure is operational. “Gas is already connected to the site, and I’ve been assured that any further commissioning will use gas only, meaning we should not see a repeat of the recent smoke and fumes,” he said. “I’ve made it very clear to the company that the lack of community consultation has been unacceptable. Our community deserves better, and I’ll continue to hold Snowy Hydro to account to ensure transparency going forward.”

A spokesperson for the NSW EPA told Newy 87.8 that officers were onsite in Kurri Kurri on 9 July to investigate. “The source appears to be the new Hunter Power Station near Kurri Kurri where Snowy Hydro is currently commissioning gas/diesel turbine units,” the spokesperson said. “As part of its Environment Protection Licence for the site, the power station is required to conduct continuous emissions monitoring including during this commissioning phase where emissions are usually higher than normal operation.”

The EPA reviewed air dispersion modelling prior to the commissioning phase, which predicted no significant health or environmental impacts. However, the agency is now checking whether the site has remained within permitted emissions limits and will continue monitoring to ensure environmental compliance. It also confirmed it is investigating odour reports received from North Lambton and Maryland, although any connection to the Kurri Kurri plant has not yet been established.

Commissioning, which is a standard process required by the Australian Energy Market Operator, involves testing new equipment under controlled conditions to ensure safe and functional operation. During this phase, emissions limits set by the EPA are higher than those that apply once the plant is fully operational. Snowy Hydro holds an Environment Protection Licence which includes provisions for pollution control and emissions reporting.

The 660 megawatt gas peaking station, officially known as the Hunter Power Project, is designed to support grid stability during periods of high electricity demand. It is expected to enter commercial operation later in 2025 and will operate less than 10 per cent of the time, with the aim of helping reduce electricity prices, avoiding blackouts, and lowering emissions by approximately five million tonnes of carbon dioxide-equivalent annually.

Originally expected to cost around $600 million, the project has increased to $1.3 billion but remains on track for delivery within budget. Severe weather has impacted the timeline, with 69 working days lost in 2025 alone due to adverse conditions. The site now has full gas connectivity through the Kurri Kurri Lateral Pipeline, which spans 21 kilometres and links the plant to the Sydney–Newcastle gas network. A further 24 kilometres of storage pipeline ensures around ten hours of onsite gas supply for peaking operations.

Snowy Hydro CEO Dennis Barnes called the successful ignition a major achievement. “First fire is a turning point in the power station’s development that confirms the design, construction and cold commissioning of the turbine has been successful,” he said. “We’re very proud of the project team, whose hard work and dedication have seen us through a very challenging delivery program.”

Despite reassurances from the company, community members have voiced frustration about the lack of timely information. While Snowy Hydro said it informed residents through a local letterbox drop and media releases, Mr Repacholi and others have called for more proactive communication as the project moves closer to full operation. The EPA has committed to keeping the public informed as its investigation progresses.

Over the weekend, the team at the Kurri Kurri Power Station completed ‘First Fire’ on one of the two gas turbines on site.
Put simply, this is testing a brand new turbine to ensure everything works as it should; from the calibration of fan blades, to testing computer systems – it’s a complicated process that we need to get right.
During this phase, the turbines burn both diesel and gas. Once fully operational, the power station will operate on gas with diesel as a back-up fuel.
The testing resulted in visible emissions and an odour that drifted over parts of the Hunter.
We understand this caused undue discomfort and worry, and for that, we sincerely apologise to the local community.
After carefully listening to community concerns, we are temporarily pausing testing.
We are also working with the EPA and will further investigate the emissions, the potential source of the odour, as well as undertaking extra monitoring of air quality.
We recognise the importance of meeting the expectations of the communities we operate in. On this occasion, we acknowledge that we did not meet those expectations.
If you have any questions or concerns, please don’t hesitate to call the Snowy Hydro Community Hotline at 1800 570 529. We will provide further updates as soon as we have more information.