Final go-ahead for Kwinana 'cogeneration' power station

22/3/95

Energy Minister Colin Barnett today announced the final go-ahead to build a major new 'cogeneration' power station as a part of the Kwinana oil refinery plant.

Mr Barnett said the Kwinana Cogeneration Plant was set to become the cleanest thermal power plant in Australia and was expected to produce about 30 per cent less greenhouse gases than a conventional gas-fired power station.

It is a project involving Mission Energy, BP Oil and Western Power.  Finance for the project has now been secured, following the official announcement of the project last month.

"As a Western Australian first, the new power station would produce electricity from a combination of natural gas from the North West Shelf and previously wasted gas produced in the oil refinery process," Mr Barnett said.

"This electricity would be used to power the refinery and would also create electricity to be sold to Western Power to help it meet its growing energy demand.

"Another unique part of the project is that the heat produced as a by-product of electricity generation, would no longer be wasted.

"Instead it would be used to produce steam which would then be fed back into the oil refinery process. The steam would also be used to produce additional electricity.

"The end result will be a power plant which is 30 per cent more efficient in energy use than a conventional power station."

As WA's first major 'cogeneration and combined cycle' project, it will involve an investment of $150 million and will produce 116 megawatts of electricity.

As a part of the project, BP will use 40 megawatts of electricity for its refinery operations.  Western Power will then use the other 76 megawatts for the grid system to meet its increasing power demand.

"A conventional power station solely produces electricity, whereas this plant will capture the gas and heat which would otherwise be wasted, to provide an additional energy source," Mr Barnett said.

The Minister said the project also highlighted further private investment in power generation following the deregulation of the energy market.  Such private investment includes the Pilbara Energy Project, Gas-to-the-Goldfields project, Mt Ferrum Power Station and the Ord hydro-electric power station.

"The cogeneration project will essentially provide a clean, efficient and additional power source for the State without the costs to Western Power of investing in a new power station," he said.

Preliminary site work will start early next month, with commissioning due by November 1996.

The construction of the cogeneration plant is expected to generate a peak workforce of 220 people, with 25 permanent jobs being created during operation.

Mr Barnett said the project would be a major boost to the Kwinana region.

Media contact: Carolyn Vicars - 222 9699