Newcastle Coal Infrastructure Group (NCIG) has introduced recycled water at its Kooragang operations, reducing its reliance on potable water by up to 50 per cent per year.
The initiative will see up to 275 megalitres (the equivalent of 110 Olympic-sized swimming pools or the annual water usage of just over 1700 residential homes) of drinking water saved for use in the region's network.
The 2018-19 drought provided the catalyst for the company to investigate how it could reduce its water usage and also access alternative water supplies.
After 18 months of quality and safety assessments, construction and commissioning, recycled water is now utilised as part of day-to-day operations for dust suppression, machine washdown and landscaping.
"As part of our project feasibility, we identified that the recycled water is completely safe and does not pose any harm to people or the environment. This was another essential factor in determining the project implementation," NCIG chief executive Aaron Johansen said.
NCIG will purchase recycled water from water infrastructure company coNEXA, whose Mayfield West water recycling plant takes treated wastewater from Hunter Water, and further treats it to a grade that's safe and suitable for industrial use. The water is then transported to NCIG via an underground pipe network.
"To support the project, we have upgraded our Steel River production facility capacity from nine megalitres to 10.5 megalitres per day, ensuring more recycled water is available to meet the peak demands on the hottest days of the year, when it's needed the most," coNEXA chief executive Kurt Dahl said.
"We're really proud of the work we've delivered in partnership with NCIG. Like them, we are committed to ensuring the Hunter community have robust and diversified water supply options where the use of recycled water is maximised," Mr Dahl said.
The project forms part of Hunter Water's Lower Hunter Water Security Plan, a whole-of-government approach to ensuring the region has a resilient and sustainable water future for the next 40 years.
"With business and industry using approximately 30 per cent of water supplied to customers, initiatives like NCIG's recycled water project will help us deliver a more sustainable and resilient water future," Hunter Water's Executive Manager Strategy and Engagement, Mr David Derkenne said.
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