EPA gives green light to $500m power plan

Brisbane-based power generator ERM Power has gotten the nod from the Western Australian environmental watchdog to build a $500 million power station and gas pipeline at Three Springs in the Mid West.

ERM chief executive Phillip St Baker said the 330 megawatt, low emission open cycle gas turbine facility was intended to serve growing demand for energy in the emerging iron ore province, and would also feed energy into the south west energy grid, which powers the southern half of the state.

Western Power submitted an application to the state economic regulator last month to construct power line infrastructure from Neerabup to Three Springs, to facilitate connection from new projects, such as ERM’s, into the south west grid, and cater for the growing demand in the Mid West.

Among the new iron ore developments expected to benefit from ERM’s new power station are Gindalbie and Ansteel’s Karara and Asia Iron’s Extension Hill.

“Approval from Western Australia’s Environmental Protection Authority is an important milestone in the development of the Three Springs project,” Mr St Baker said.

“The next stage in the development is finalising fuel supply and electricity off-take agreements and capacity certification from the Independent Market Operator, which will allow us to make a final investment decision on the development.

“Once a final investment decision is made, construction would take about two years for the power station and about six months for the pipeline.”

One of Australia’s largest power generators, ERM already has significant infrastructure in WA, owning and operating the 320MW Kwinana power station and the 330MW Neerabup power station and gas pipeline.

At 9:20AM ERM Power’s stock was down 1.3 per cent to $1.53.