TransAlta to build power station in WA

TransAlta Corporation has announced plans to build, own and operate a 150 MW combined cycle gas power station in South Hedland, Western Australia, to supply power to Horizon Power, a state-owned utility, and to Fortescue Metal’s subsidiary The Pilbara Infrastructure.

The project is estimated to cost approximately AU$570 million, which includes the cost of acquiring existing equipment from Horizon Power. The project will be built on an existing site at Boodarie Industrial Estate and will be one of the most efficient power stations in the region. 

“We set out to grow our business in Australia three years ago. By focusing on serving large industrial customers, we’ve now been able to invest close to a billion dollars in Australia in assets with stable long-term contracts,” said Dawn Farrell, TransAlta’s president and CEO.

“This latest investment will have a power plant ready to serve a new customer, Horizon Power, and an existing customer, Fortescue, in the Pilbara region of Western Australia by 2017.”

The development has been fully contracted under 25-year power purchase agreements (PPAs) with Horizon Power and Fortescue, and may be expanded to accommodate additional customers at later dates. The station will supply Horizon Power’s customers in the Pilbara region as well as Fortescue’s port operations. The combined cycle gas power station is expected to be commissioned in 2017, creating approximately 250 jobs during construction and 20 jobs when in full operation.