TransAlta power station offically opened

TransAlta officially opened its new 150-megawatt combined cycle natural gas power station in South Hedland today, with Horizon Power as its sole foundation customer after Fortescue Metals Group backed out of an offtake agreement.

The new power station feeds into the North West Interconnected System and serves nearly 50,000 people throughout Karratha, Port Hedland, South Hedland and Roeburne.

The $570 million station, built by Canada-based TransAlta, provides low-cost electricity while limiting greenhouse gas emissions.

TransAlta chief executive Dawn Farrell said the joint initiative with the state government had worked well.

“We are proud to be working with Horizon Power and proud of our work in Australia over the past 20 years and the facilities we have built and maintained in Western Australia,” she said.  

“We are here to stay in the Pilbara and to have Horizon Power as a key and substantial customer with TransAlta.

“South Hedland power station is a clean, cost-effective, important driver of growth, jobs and infrastructure in the Pilbara region,”

The power station has been generating power since July and has an operating life of 40 years.

Horizon has an agreement to buy 75 per cent of the powerr station's output.

Fortescue Metals Group recently terminated its agreement with TransAlta to purchase power from the station after the miner raised performance concerns in August.

Fortescue had contracted to draw 40MW from the South Hedland facility for its nearby port operations. However, in August the company said the power station had not satisfied contracted performance criteria.

Energy Minister Ben Wyatt said Horizon was a foundation customer and the new plant could be expanded to supply power to other commercial users.

"We are celebrating more than the successful commissioning of this innovative power station - we are celebrating a great partnership between the State Government and industry,” he said

 "At the end of the day, it's all about supporting the people of the Pilbara by delivering a safe, reliable and fuel-efficient energy supply well into the future."