The grant for the 200 kilowatt turbine was announced yesterday by the NSW Minister for Energy, Kim Yeadon.

It was one of a number of grants aimed at producing 'clean, green' energy ann-ounced by Mr Yeadon for pilot projects right across the State.

The Split Rock Dam project was put forward by Sydney-based firm Zenith Investments.

The proposal is for the installation of the turbine to use water released from the 397,000 megalitre capacity Spilt Rock Dam, 14km north of Manilla, to generate electricity for feeding into the State's power grid.

While only a comparatively small generation scheme, it would generate sufficient electricity to power 123 average Australian homes, according to Mr Yeadon.

The $100,000 is designed to kick start the green energy project, in line with the Govern-ment's bid for cleaner energy sources.

"This innovative hydro-electric project near Tamworth will use the existing flow of water on the Manilla River to produce clean power," Mr Yeadon said.

"The turbine will achieve a reduction in greenhouse gas emissions of 30,000 tonnes of CO2 over the

30-year life of the project."

Mr Yeadon's office said the Split Rock project "demonstrated the economic viability of micro-hydro systems in NSW".

"The modified turbine, with improved efficiency and reliability, is due for completion by the end of the year," Mr Yeadon said.

The man behind the project is believed to be a former NSW politician, Jack Beale.

Mr Beale has proposed a number of similar hydro-electric projects around the State during the past decade.

One of the biggest and most ambitious was proposed for the Styx River, near Georges Creek, between Armidale and Kempsey.

While it has not officially been abandoned, Mr Beale's requirements for road construction and sealing to the proposed site have resulted in it being put on the backburner.

Mr Beale could not be contacted for comment yesterday on his latest proposal.

The Split Rock turbine is one of a number of projects to be implemented under the State Government's green energy program in a bid to reduce greenhouse gases by 5.7 million tonnes.

Narrabri's Auscott Cotton Gin has also been granted $650,000 for a new waste to energy plant.

This project involves the conversion of cotton trash into gas to replace the use of LPG for drying.

A second stage will involve the installation of a co-generation plant to convert the gas into electricity.

Both projects have been funded through the NSW Government's Sustainable Energy Development Authority.