18/06/2009 - 11:56

Aviva, AES submit Synergy proposal

18/06/2009 - 11:56

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Aviva Corporation and AES Corporation have submitted their wholesale power proposal in the tender phase of Synergy's 2009 energy supply procurement contract for the Mid West region.

Aviva, AES submit Synergy proposal

Aviva Corporation and AES Corporation have submitted their wholesale power proposal in the tender phase of Synergy's 2009 energy supply procurement contract for the Mid West region.

The company's proposal is based on its Coolimba power project, near Eneabba, which comprises of a 400 megawatt base load power station with a provision for a 360MW gas-fired power station and up to 2.9 million tonnes per annum carbon sequestration project.

 

 

The announcement is below:

 

Aviva Corporation Limited (ASX:AVA, BSE:AVIVA) and global power company AES have submitted their wholesale power proposal in the tender phase of Synergy's Supply Procurement 2009. The Aviva/AES proposal is based on the Coolimba Power Project located near Eneabba in the Mid West of Western Australia.

The development partners in the Coolimba Power Project bring together complementary skills and experience necessary to develop a large power project.

Aviva Corporation brings local market knowledge and mining experience to the project, while AES Transpower Australia Pty Ltd brings its world class power generation development and operations experience.

Aviva CEO Lindsay Reed said the Coolimba Project also offers a unique opportunity for Western Australia to be at the forefront of carbon mitigation technology because it is widely recognised as one of the best prospects for an integrated Carbon Capture and Storage project in Australia.

"It has rightly attracted attention nationally and even globally because of its position adjacent to known depleted gas reservoirs and because of the Project timing it can be built taking this into consideration during design and construction," Mr Reed said.

"The project provides the opportunity for additional capacity and energy based on gas fired generation at Coolimba, taking advantage of shared fixed costs such as land, network connection, on-site fuel storage and shared operating plant management."

The project's location also offers other benefits like reduced network losses, enhanced utilisation of the proposed 330KV transmission line and the ability to enable more renewable wind projects to be connected to the grid providing the potential to assist Western Australia in meeting its additional MRET requirements.

Mr Reed said of critical importance in these difficult financial times was the ability of the Coolimba development partners to deliver on financing and construction.

"The combination of AES technical and financial skills with the underlying project fundamentals of Coolimba makes this project the only one of its kind in the current environment," he said.

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