Fortescue and Origin Energy Withdraw from Northern Water Project Amid Shift in Priorities

Two energy companies, Fortescue and Origin Energy, have withdrawn from the Northern Water Supply project in South Australia. The $5 billion project involves building a desalination plant and connecting it to a 600km water pipeline across the state. BHP remains supportive, citing the project's importance for providing a sustainable and secure water supply to its copper mining operations. The project's final investment decision is due in the first half of next year.

Two major energy companies, Fortescue and Origin Energy, have withdrawn from the Northern Water Supply project in South Australia. The project, valued at $5 billion, involves building a desalination plant along the Spencer Gulf and connecting it to a 600km water pipeline across the state. The withdrawal of these companies does not affect the project's feasibility, according to Energy and Mining Minister Tom Koutsantonis.

The project, still in its pre-feasibility study phase, aims to provide a sustainable and secure water supply for BHP's copper mining operations in the state. Additionally, it was proposed to support new hydrogen projects on the Eyre Peninsula and Spencer Gulf. Fortescue and Origin were initially mooted as future commercial customers for the water created by the new infrastructure.

Fortescue and Origin had agreed to contribute to a $200 million feasibility study alongside BHP and the state government. However, both companies have since turned away from hydrogen investment and have withdrawn from the Northern Water Supply Project. Fortescue and Origin confirmed their withdrawal from the project, citing their proposed involvement in the Port Bonython Hydrogen Hub on the Spencer Gulf [2].

BHP remains supportive of the project and sees it as crucial for its copper mining operations. The final investment decision for the project is due in the first half of next year. Despite the withdrawal of Fortescue and Origin, the project's future looks promising, with other companies potentially stepping in to fill the gap left by these withdrawals.

References:
[1] https://www.abc.net.au/news/2025-08-29/northern-water-problems/105690726
[2] https://www.abc.net.au/news/2025-08-29/northern-water-problems/105690726