Optimising the Future: Why Early Land Use Planning is Critical in Decommissioning coal-fired power stations 

Retiring coal-fired power stations is essential for Australia to meet its emissions reduction targets. According to expert analysis, achieving these goals will require the closure of the equivalent of one major coal plant—such as Hazelwood—every year to stay within the national carbon budget.

The need for decommissioning these coal-fired power stations safely and efficiently to allow the asset to be repurposed is becoming increasingly urgent. Australia’s coal-fired power stations are among the largest in the world. Many are located in regional areas and often span thousands of hectares. The sites include the industrial footprint with transmission lines, water infrastructure, and access roads, and are surrounded by extensive buffer zones and native vegetation.

Decommissioning these sites is a major undertaking. Mid-range estimates suggest that decommissioning a single coal-fired power station in Australia can cost upwards of AUD $500 million, excluding redevelopment.

The stakes are high—not just financially, but in terms of environmental legacy, community impact, and future land use potential. Yet, amid this complexity lies a powerful opportunity: early land use planning. At Ramboll, we believe that the key to successful decommissioning lies not just in managing closure, but in enabling a sustainable and productive future for these sites. Our experience across Australia shows that integrating land use planning in parallel with the planning for the decommissioning, demolition, and decontamination (DDD) process can significantly streamline approvals, reduce costs, and unlock long-term value.

How can the DDD process benefit from early land use planning, and in turn, help streamline the early land use planning?

1. Informs Strategic Decision-Making

In Australia, land use planning is governed by a complex web of state and local planning instruments. Understanding the intended future use of a site—whether for industrial redevelopment, renewable energy, residential expansion, or conservation—guides the entire DDD process. For example, remediation standards in New South Wales differ significantly between employment lands and residential zones. Early clarity enables tailored, cost-effective DDD strategies.

2. Accelerates Approvals and Reduces Delays

Planning approvals in Australia can be time-consuming, particularly when environmental impact assessments (EIAs) are required. Ramboll’s experience shows that early engagement with regulators such as the Environment Protection Authority (EPA) and Department of Planning, Housing and Infrastructure in NSW or Victoria’s EPA and Department of Transport and Planning, along with local government, combined with a clear land use vision, can prevent delays. Having delivered several complex and long-term DDD projects, many lessons learned can be shared so project owners do not need to reinvent the wheel each time, therefore resulting in acceleration in the process and preventing unnecessary delays.

3. Enables Cost and Program Optimisation

Strategic planning can reduce redundant work and optimise material reuse. At the former Hydro Aluminium smelter in Kurri Kurri, Ramboll supported the reuse of over 260,000 tonnes of crushed concrete on-site—an outcome made possible by early understanding of the future land use and infrastructure needs. This not only saved costs but also reduced environmental impact.

4. Supports Stakeholder and Community Engagement

In Australia, community consultation is a critical component of planning approvals. Early land use planning facilitates transparent communication with local councils, Traditional Owners, and regional communities. This is essential for maintaining social license and aligning redevelopment with local aspirations.

5. Clarifies Approval Pathways

One of the most common misconceptions is that large-scale demolition automatically requires complex approvals. In reality, many demolition activities can proceed under simpler pathways—if they are decoupled from remediation approvals. Ramboll helps clients map these pathways early, avoiding unnecessary delays and confusion.

What are some of the critical approaches to help effective stakeholder engagement, contamination assessment, regulatory navigation, and ultimately, responsible environmental management across Australia?

1. Future land use informs DDD strategies from the outset.
2. Approval pathways are mapped early, avoiding costly delays.
3. Stakeholder engagement is embedded into the process, aligning with sustainability and community expectations.
4. Environmental risks are managed proactively, not reactively.

Our work on the Hydro Aluminium Kurri Kurri Smelter demolition and remediation project demonstrates how early planning and expert guidance can transform complex, high-risk sites into valuable assets for future generations. In this project, Ramboll’s involvement helped streamline approvals, optimise remediation strategies, and enable early divestment—unlocking both environmental and financial value.