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TWO new power stations worth $870 million are being planned for South Australia in a move that could ease strain on the state's electricity network.Corporate firms Babcock & Brown and NP Power will this month apply to the Development Assessment Commission to build a 450MW gas-fired peaking power station at Redbanks, near Mallala.
The project, estimated to cost $350 million, has been endorsed by the State Government as a "public infrastructure development" under section 49 of the Development Act.
A separate 560MW power station, valued at $520 million, has been foreshadowed as part of Altona Resources' $3.9 billion proposal to produce petroleum and gas in the state's Far North.
If approved, the two power stations would become the state's second and third biggest, behind Torrens Island's 800MW generator.
The Mallala power station is likely to be operated by Flinders Power, a subsidiary of Babcock & Brown, which directs power into the SA and national electricity markets. Power from the Far North project would be supplied to the national electricity grid and sold on to consumers. Last year, the Electricity Supply Industry Planning Council warned of looming electricity reserve shortages in SA saying new investment in power generation was "essential" to meet continuing growth in demand. The Advertiser has obtained specific details of the Mallala project showing it would be built on 10ha of land at Helps Rd in Redbanks, about 55km north of Adelaide. The project would be carried out in three stages with each stage capable of producing 150MW of power. On average, SA uses 1400MW each day which can double during peak times. Construction at the Redbanks site is expected to start in July but the project would be subjected to comment from the public and Environment Protection Authority before being approved. The power station is described as "peaking" because it would only operate at times of peak electricity demand. It would use open-cycle gas turbine engines fuelled by natural gas to generate electricity. The gas would be supplied through the Moomba to Adelaide gas pipeline which intersects the development site. Babcock & Brown and NP Power would not reveal the cost of the project. A spokesman for Transport, Energy and Infrastructure minister Pat Conlon said the State Government was "aware the companies are investigating the proposal and will await further developments". Redbanks farmer John Worden was yesterday supportive of the proposal, saying it would create jobs during construction. As part of their proposal, the companies say the power station would produce "low greenhouse gas emissions" and would "meet or exceed" EPA requirements. Over the past 20 years, NP Power's employees have been responsible for projects valued at $17 billion, and providing around 7000MW of generating capacity. Babcock & Brown have financially-backed and developed several power projects, including the $460 million Lake Bonney wind farm in the state's South-East. The Altona Resources project involves three mining exploration licences covering 2500sq km in the northern portion of the Permian Arckaringa Basin. Adelaide-based Altona Resources director Phil Sutherland, who is a former chief executive of the SA Chamber of Mines and Energy, said the project was still in the development phase. It would take between seven and 10 years for the project to commence and would also need State Government approval. A spokesman for Mineral Resources Development minister Paul Holloway said the State Government was helping Altona Resources with their project.