POULTRY giant Baiada's new $208 million chicken-processing plant will source up to 90 per cent of the eight million litres of water it needs each day from recycled water.
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Concerns were raised by the Inland Rivers Network and Tamworth Water Security Alliance (TWSA) about how the industrial demand would impact the future of the city's drinking water supply.
"There are many questions about industrial use of Tamworth's drinking water," TWSA member David McKinnon said.
"Does industry pay the same amount for water as households in Tamworth? Are they under the same water restrictions when supply is tight?
"The people of Tamworth have the right to know more about how the town water supply is managed, there should be open and accountable information available to the public."
The state-significant project was approved by the Department of Planning, Infrastructure and Environment (DPIE) at the end of January.
It allows the company to double the size of its Westdale facility, and process three million chickens a week, around the clock.
Part of the proposal includes technology for wastewater treatment and water recycling that will allow it to obtain up to 90 per cent of its water needs from recycled water, a DPIE spokesman said.
"That means the new facility will require less town water than currently is supplied to Baiada's existing Out Street facility."
Concept designs were developed for an Advanced Water Treatment Plant that would allow six million litres to be recovered as potable water.
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The method has been used successfully at two poultry processing plants in Australia for more than a decade.
The water treatment plant is expected to cost $3.5 million in electricity to run each year.
As a business user, Baiada is not directly affected by water restrictions, Tamworth Regional Council water and waste director Bruce Logan said.
"However, the cost of the water consumed represents a substantial business expense and because of this Baiada and all other abattoirs have, relatively speaking, significantly reduced the amount of water used at their respective plants over the years," he said.
The Leader contacted Baiada for comment.