Electricity gererator Verve Energy has announced plans to close four 60 MW generating units at its Muja Power Station, reducing the facility's generating capacity to 854 MW.
Electricity generator Verve Energy has announced plans to close four 60 MW generating units at its Muja Power Station, reducing the facility's generating capacity to 854 MW.
Verve is currently inviting expressions of interest for the units, known as Muja Stages A and B, with the company recording a number of informal approaches so far.
The full text of a company announcement is pasted below
Verve Energy, WA's biggest electricity generator, is closing its oldest and least efficient coal-fired electricity generating units at Muja Power Station near Collie. After the closure of the older units, Muja Power Station will have a generating capacity of 854 MW.
The closure on 30 April 2007 will reduce Verve Energy's annual greenhouse emissions by about 700,000 tonnes. The four units use about 900,000 tonnes of coal a year.
As well, Verve Energy, which already burns biomass at Muja Power Station, is improving its environmental performance by improving the efficiency of its other generators, investing in renewable energy projects and sponsoring clean coal technology research.
About 30 staff currently working on the units to be closed will be transferred to other generating units at Muja Power Station or at Kwinana Power Station. Some staff members may take the opportunity to retire.
Verve Energy is inviting expressions of interest for the future use of the four 60 MW generating units which are known as Muja Stages A and B.
There has been some interest by external parties in the future of these generating units and the site and a number of informal approaches have been received so far.
This Request for Proposals process will test the market formally and assess the commercial value of the plant. Verve Energy will be under no obligation to accept any expression of interest and will not make any financial contribution towards future uses of the plant, which may or may not involve power generation.
The shut down of the units, which will be put on care and maintenance, is the first step to reduce Verve Energy's total generating capacity to 3000 MW as directed by Government. Two units at Kwinana Power Station are scheduled to close down in 2008.
Verve Energy is putting considerable effort into improving its efficiency and reliability as a participant in the new competitive electricity market. Closing these units complements that strategy and will reduce Verve Energy's greenhouse emissions per unit of generation.
Verve Energy is currently in the process of spending over $100 million in the remaining four generating units at Muja to improve reliability and efficiency.