A site crew is wrapping up remediation work on the former aluminium smelter site this week.

Construction work is due to commence shortly after the project received final Commonwealth environment approval last month.

Snowy Hydro Limited has signed a contract with UGL to construct the 660 megawatt power station. The contract will result in about $185 million in work for the Hunter economy.

"We will take opportunities to turbo-charge local investment by the project," Snowy Hydro chief executive Paul Broad said.

"That's why we've engaged a Hunter-based recruitment agency, engaged a local civil works contractor and established a Snowy Hydro site office in Kurri Kurri.

"As the project ramps up, Snowy will continue to create jobs and provide a critical economic boost to the Hunter region. At peak construction, we expect around 600 direct jobs will be created across the entire power station and gas lateral project."

Mr Broad confirmed the project is on track to deliver its first power in summer 2023, which will coincide with the closure of Liddell power station.

Meanwhile, Snowy Hydro has placed an order with Mitsubishi Power for two gas turbines that will drive the plant.

The turbines, which are being manufactured at the Takasago Machinery Works in Japan, will have the potential for up to 15 per cent hydrogen co-firing.

Federal Energy Minister Angus Taylor said the project would help deliver affordable and reliable power.

"We're seeing record levels of investment in renewables across Australia. The highest level of investment in household solar in the world - more than one in four houses with solar on their roofs - but we've got to make sure we have the firm energy at night when the sun goes down, when those solar cells can't produce electricity. This is exactly what Hunter Power Project will do."

Labor leader Anthony Albanese announced last month that a Labor government would provide Snowy Hydro with an extra $700 million in equity to make the Kurri peaking plant operate on green hydrogen by 2030.

It would also instruct Snowy Hydro to operate the plant on 30 per cent green hydrogen as soon as possible.

"This is a practical plan; it's one that ensures we don't have a stranded asset with workers losing their jobs down the track," Mr Albanese said.

Despite the major modification to the existing plan Labor's climate spokesman Chris Bowen said the 2023 timetable for the plant would remain unchanged.

IN THE NEWS:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: