Sustainable developer buys Adelaide site

A solar farm and an energy-from-waste facility will be built on a controversial development site in Adelaide's northwest.

The Veolia Group will spend $5 million to buy 20 hectares of the Gillman site, which is contingent on Renewal SA providing $2 million for infrastructure works.

The resource management company also has options to buy a further 182 hectares over a five-year period.

"Veolia's vision to transform the Gillman land into a showcase site for waste management and renewable energy production is a great opportunity for South Australia," Urban Development Minister Stephen Mullighan said on Thursday.

"It has the potential to generate hundreds of jobs during construction and thousands of ongoing jobs."

The 400ha Gillman site has caused problems for the government, with a questionable deal falling through.

In 2013, the 400ha at suburban Gillman were sold to Adelaide Capital Partners without going to tender and at a price many considered to be well below the market rate.

The deal was also subject to an investigation by the Independent Commissioner Against Corruption who found two Renewal SA officials engaged in conduct that amounted to maladministration.

Commissioner Bruce Lander said the officials should have advised Treasurer Tom Koutsantonis to consider an open tender process and a proper valuation should have been obtained.

But Premier Jay Weatherill and Mr Koutsantonis were cleared of any wrongdoing.

Veolia executive general manager Laurie Kozlovic said its Gillman project would allow the company to consolidate its South Australian operations on one site.

He said the combustion process to be used in the waste-to-energy plant was clean and efficient and would provide a reliable source of energy.

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