ERM Power is a successful developer, owner and operator of power stations across Australia. We have led the development of six power stations representing approximately 5% of Australia’s total power generation capacity. All six power stations have been gas-fired and we have an excellent track record of delivering projects safely, on time and on budget.
We have divested our interest in four of these power stations and today we have an interest of 497 MW in two high quality power stations.
We are also experienced at operating power generation and gas pipeline assets and have a custom built operating platform including trading systems covering gas and electricity markets on the east and west coasts of Australia. We operate two gas-fired power stations totalling 497 MW.
We maintain an exceptional safety record with no lost-time injuries from any staff or contractors on the managed facilities during commercial operation.
All reporting required for public access in accordance with the ministerial statements for the NewGen Neerabup Power Station is available directly from the power station. Contact Details: NewGen Neerabup Power Station Manager: 08 9206 8005.
Oakey Power Station
The 332MW dual liquid / gas-fired open-cycle Oakey power station is located on the Darling Downs, 150km west of Brisbane, adjacent to the Roma to Brisbane gas pipeline, and in Queensland’s growing coal seam gas corridor. ERM Power led the development of Oakey with commissioning occurring safely and on time in December 1999. We own 100% of Oakey and also operate and financially manage the power station. Oakey typically runs during times of peak electricity demand when Queensland’s power needs are greatest. It receives steady cashflows under a power purchase agreement (‘PPA’) with AGL that expires in FY2015. ERM Power’s interest in Oakey constitutes a 100% investment in a debt-free peaking power station located in Queensland’s coal seam gas corridor. In addition, because Oakey has operated for less than 5% per annum, it will still be in near-new condition. Its replacement cost is estimated to be in the order of $320 million. ERM Power will consider all options after the PPA expiry including providing product to our sales business or entering into another long-term contract with a third party.
Neerabup Power Station
The 330MW gas-fired open-cycle Neerabup peaking power station is located 40km north of Perth and includes a 30km high-pressure gas linepack pipeline connected to the Dampier to Bunbury Natural Gas Pipeline. ERM Power led the development, financing and construction of the power station with completion occurring safely and on time in October 2009 for a total project cost of $436m.
We hold a 50% partnership interest in Neerabup with the remaining interest held by Energy Infrastructure Trust, and also operate and financially manage the power station.
Neerabup typically operates during times of peak electricity demand, delivering power when the state of Western Australia needs it most.
Its revenue is underpinned by a 20-year financial tolling arrangement with the government-owned electricity retail corporation, Synergy. Neerabup retains dispatch control allowing for further commercial dispatch upside above the underpinning Synergy revenues.