15 Aug 2008
Western Energy Pty Ltd, a wholly owned subsidiary of Perth Energy Pty Ltd, today executed the first stage of financial closure for its 120 MW Kwinana Power Station Project.
The project is expected to have a total cost of A$120m with non recourse project finance covering nearly two thirds of the total cost. While a number of minor conditions remain to be satisfied, all funding arrangements are now committed.
Perth Energy is 76% owned by Infratil Ltd (NZX:IFT), a New Zealand infrastructure and utilities investment company. Infratil has entered into an equity subscription and underwriting agreement with Perth Energy for the project.
The turnkey EPC contract has been awarded to Perth based Capital Turbines Australia Pty Ltd.
The 120MW Power Station will consist of two Pratt and Whitney FT8 Gas Turbines, in an open cycle arrangement, connecting directly to the Dampier to Bunbury Natural Gas Pipeline. The plant will have the capability of operating on liquid fuels so mitigating any risk of gas supply disruptions. Being fast response, the plant will be particularly valuable in supporting the grid including managing variable output renewable projects.
The project has IMO certification for capacity credits, commencing October 2010. Capacity credits are a feature of the Western Australia market designed to ensure adequacy of capacity on the system. The capacity credit mechanism provides good base support for the project’s revenues.
Ky Cao, Perth Energy Chief Executive, is especially pleased with reaching this position after identifying the opportunity some 6 years ago, stating “Perth Energy is particularly grateful to the many stakeholders, including government and non-government agencies and authorities, without whose efforts the project would not have progressed to its current status.”
Darryl Flukes, Chairman of Perth Energy and Infratil Energy Australia’s Chief Executive added that “development of this asset is instrumental in supporting Perth Energy’s retail growth strategy in both electricity and gas and becoming the third energy supplier within the South West Internconnected System (SWIS).”
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