Federal government approves terms for Middle Arm environmental impact study

The NT government is planning to build the Middle Arm industrial precinct on Darwin Harbour.  (ABC News: Michael Donnelly)

The federal government has approved the terms for assessing the environmental impact of the planned Middle Arm industrial development near Darwin.

The federal government has committed $1.5 billion in funding for the controversial precinct, which is proposed to house gas, carbon capture and storage and minerals processing facilities, and develop green hydrogen.

This week, the NT government announced Federal Environment Minister Tanya Plibersek had approved the terms of reference for what must be included in an environmental impact study “to ensure the possible impacts of the development are correctly measures and assessed”.

The Middle Arm project is currently the subject of a federal senate inquiry examining the development and potential future uses of the site.

The NT government has promoted Middle Arm as a key part of its plans for a major expansion of the Northern Territory’s onshore gas industry, and labelled it a “low emissions” manufacturing hub.

However, the ABC previously revealed that the original business case for the project described it as a “new gas demand centre”, and the project has drawn concern from environmental groups.

NT Environment Minister Eva Lawler said the precinct would be an “economic enabler” for the Northern Territory that would “leverage [its] significant abundance of natural resources and critical minerals which are key in the fight against climate change”.

“”Our Territory Labor Government is focused on protecting the environment, creating green energy, boosting job numbers and growing our economy, all of which will be facilitated through the Middle Arm Sustainable Development Precinct,” she said.

Ms Lawler said the terms of reference had been “formulated through consultation between environmental experts, community members and government bodies to ensure no stone goes unturned throughout the environmental assessment process”.

The NT government said 30 submissions responding to the draft terms of reference had been received and reviewed in detail by the federal government before the terms were finalised.