AVIVA Corporation and ERM Power have announced they will conduct a joint pre-feasibility study on a 400-megawatt coal-fired power station in the Mid West region of WA. Aviva is the second local company, after Eneabba Gas, to pursue a major power generation project in the Mid West. Both companies are hoping to meet the expected electricity demand from planned iron ore projects inland from Geraldton. Aviva said the pre-feasibility study would run in conjunction with its developing work on the central west coal resource, located 150 kilometres south of Geraldton. Aviva chief executive Lindsay Reed said the study was a significant milestone. “Going to market with an established energy developer is a major vote of confidence in the relatively low cost economics of the central west coal resource,” Mr Reed said. Aviva’s partner, private Queensland company ERM Power, was the successful bidder, in conjunction with investment bank Babcock & Brown, to build WA’s newest base-load power station. Their joint venture company, NewGen Power, recently commenced construction of the $400 million, 320-megawatt gas-fired power station at Kwinana. ERM chairman Trevor St Baker said: “the Mid West Power Station Project complements our existing assets and aspirations in WA and we look forward to working with Aviva”. Mr Reed said Aviva was pleased to be working with ERM because of its experience in dealing with the environmental, marketing and network issues to bring a baseload power station to the recently deregulated WA energy market.
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