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Muja Power Station joint venture
Release Date: 19 May 2009
Verve Energy and Inalco Energy have signed an MOU to set up a joint venture to refurbish, upgrade and recommission Muja Power Station Stages AB.
To be known as Vinalco Energy, the joint venture will have Muja AB operating again in time for the 2012 summer. It will operate for about 15 years.
The joint venture will help secure WA power supplies through a period of supply uncertainty due to heightened barriers to entry such as technical risk, CPRS and capital constraints.
Inalco is affiliated with the Kempe Group of Companies (www.kempe.com.au), an international provider of engineering solutions based in Geelong, and with a WA presence for the past 10 years.
Verve Energy Managing Director Shirley In‘t Veld and Kempe Group MD Grant Kempe signed the MOU.
Muja Power Station is located at Collie, 200km south east of Perth. Stages AB (four coal-fired generating units each of 60MW capacity) was closed in April 2007 but returned to service last year during the Varanus gas crisis. It was shut down in April 2009.
Agreement between Verve Energy and Inalco Energy followed a more-than-two year process of evaluating expressions of interest and bids for future uses of the four generating units.
Inalco Energy will contribute up to $100 million and engineering skills. Verve Energy will contribute market and operational knowledge plus existing plant, equipment, coal and licences.
The deal extracts true value from an asset that would otherwise remain in mothballs or require significant demolition costs.
On-site work could begin in October 2009. Up to 200 jobs could be created during the refurbishment and upgrade stage of the project.
CONTACT REFERENCE: PETER WINNER (08) 9424 1977
Any queries from the media are directed to Verve Energy's Corporate Relations branch.
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(08) 9424 1977 - Vaninka Vittiglia
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