CALGARY—TransAlta Corp. said it has signed a deal to build a 150-megawatt combined cycle gas power plant in Western Australia.
According to the Alberta-based company, it will build, own and operate the facility in South Hedland, about 1,600 kilometres north of Perth on Australia’s northwest coast.
The plant will supply power to state-owned utility Horizon Power and Pilbara Infrastructure Pty Ltd., a subsidiary of Fortescue Metals Group Ltd.
The project is estimated to cost approximately AUD$570 million, which includes the cost of acquiring existing equipment from Horizon.
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.
The development has been fully contracted under 25-year power purchase agreements with both Horizon and Fortescue, and may be expanded to accommodate additional customers at later dates.
The station will supply Horizon’s customers in the Pilbara region and 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.
TransAlta has been operating in Western Australia since 1996, with six facilities totaling 425 megawatts of generating capacity.