Perth entrepreneur Rod Jones, best known as the founder of listed company Navitas, is behind plans to build a $90 million diesel-fired power station at Merredin.
Mr Jones is the owner of Merredin Energy, which is developing the 82 megawatt Merredin power station, and is also a director and shareholder of unlisted company Perth Energy, which recently completed a 120 megawatt power station at Kwinana.
Merredin Energy has awarded a $75 million engineering, procurement and construction contract for the new peaking plant to Balcatta based CTEC, formerly known as Capital Turbines.
CTEC has begun the engineering phase with construction of the two GE Frame 6B gas turbines expected to start in June 2011.
The sustainable engineering company said the rapid-build project will employ around 500 people over its twelve month construction period.
The Merredin project was previously known as Namarkkon. Last year, Perth Energy took over the process of gaining certification of the plant and Mr Jones took over ownership.
The new power station will be the second major development at Merredin, in the eastern wheatbelt, with the Collgar wind farm currently under construction.
Majority owned by invetsment group UBS, Collgar is budgeted to cost $750 million and will produce 206 MW per year.
CTEC managing director Neil Robinson said the company collaborated closely with Perth Energy on numerous options to come to an optimal performance model to satisfy environmental and networks requirements.
Under the contract CTEC will provide design, specification and procurement of all plant components, in addition to, construction, commissioning, documentation and reliability and performance testing.
The company said it employs the world's best practice technology to minimise emissions and improve security of electricity supply.
