Enerji in tech deal with B&B Power

Perth-based energy specialist Enerji will investigate the potential use of its low-emission cogeneration technology in two of Babcock and Brown Power's power stations.

Both companies have entered a memorandum of understanding that paves the way for Enerji to model the performance of its waste heat recovery systems as part of the power stations.

The power stations are a 105 megawatt gas fired station in WA and a 540MW coal fired station in South Australia.

Enerji said it will identify the benefits and risks and establish a business case following a prefeasibility study.

As Australia's largest ASX-listed electricity generation business, Babcock and Brown Power represents a large potential customer for Enerji's recovered energy generation service.," Enerji said in a statement.

"Although this is only the first step in the process, the Company is confident its recovered energy systems, which integrate Opcon Powerboxes and Airec heat exchangers, will prove viable and attractive to Babcock and Brown Power.

"This potentially opens up the opportunity to implement Enerji's recovered energy solutions on up to 2,800MW of existing generation capacity."

Shares in Enerji, which had previously been in a trading halt, were up one cent to 15.5 cents at 13:18 AEST.