20/08/2008 - 22:00

CTEC signs on for Kwinana project

20/08/2008 - 22:00

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Electricity generation hopeful Western Energy is a step closer to bringing its Kwinana power station proposal to fruition, after West Perth-based CTEC signed on to engineer, procure and construct the facility.

CTEC signs on for Kwinana project

Electricity generation hopeful Western Energy is a step closer to bringing its Kwinana power station proposal to fruition, after West Perth-based CTEC signed on to engineer, procure and construct the facility.

The two companies have been working together on the project for three years, considering various configurations until the best fit was found.

CTEC, rebranded from Capital Turbines earlier this year, has worked on other power station projects including Alinta's Wagerup co-generation plant and plants in Georgia, Indonesia, and the US.

CTEC chief executive Neil Robinson said the final product would not only comply with the customer's financial model but also the requirements of the South West Interconnected System.

Western Energy is a wholly owned subsidiary of West Perth-based Perth Energy, which supplies electricity to contestable and small-use customers in WA.

Perth Energy has established itself as a viable third choice in the retail electricity market, which was deregulated in 2006.

Perth Energy managing director Ky Cao said the company has executed the first stage of financial closure on the $120 million project, with non-recourse project finance covering nearly two-thirds of the cost.

He said the company was pleased to have reached this position after first identifying the opportunity almost six years ago.

The 120MW dual-fuel open-cycle gas turbine power plant has been on the drawing board since 2003.

The plant will consist of two PWPS FT8 gas turbines in an open-cycle arrangement, and will be linked to the South West Interconnected System.

Work is expected to begin on the plant in October this year and is expected to finish by June 2010, with 150 people to be employed during construction phase.

Upon completion, CTEC will have the option of a long-term operations and maintenance contract.

Perth Energy is majority owned by New Zealand stock market-listed infrastructure and utilities investment company, Infratil Ltd.

Infratil has entered into an equity subscription and underwriting agreement with Perth Energy for the project.

"The development of this asset is instrumental in supporting Perth Energy's retail growth strategy in both electricity and gas, and becoming the third energy supplier in the SWIS," Perth Energy chairman Darryl Flukes said.

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