ASX AND
MEDIA ANNOUNCEMENT
21 November
2007
POSITIVE ENGINEERING STUDY FOR
COOLIMBA POWER
Integrated energy company Aviva
Corporation Limited (“Aviva”) (ASX: AVA)
has received the preliminary technical and commercial report on its Coolimba Power project prepared by owners’ engineer
PB Power.
The preliminary study confirms that a 2x200MW
plant configuration incorporating world leading emissions technology for water,
sulphur and carbon will have attractive economic returns in the SWIS (South
West Interconnected System) market.
Aviva Chief Executive Officer Lindsay
Reed said the results from the PB Power study are a further
step forward for the Coolimba Power project, which
will be a new name in energy in WA, based near Eneabba in the states’ Mid
West region.
“The PB Power study highlights the
robust nature of the project, incorporating carbon capture ready emissions
technology whilst providing a competitive new source of electricity for the
SWIS.
“We look forward to working with
equipment supply and design engineers in the coming months to configure Coolimba and work towards pre-development activities
including approvals, network access agreements, power purchase agreements, EPC
contracts and financing,” Mr Reed said.
Aviva believes the initial results have positioned
the company strongly for securing debt and equity finance for Coolimba and achieving financial close in the last quarter
of 2008. Aviva has previously announced that
Citigroup Global Markets Australia Pty Limited had been retained to assist in
the ongoing development, structuring and financing of the Coolimba
project.
This first phase of a feasibility study was to
undertake capital cost and plant performance estimates, electricity revenue
analysis and financial modelling. The second phase, which includes EPC
(engineering, procurement and construction) contract formation, fuel supply, regulatory
approvals, project planning and off-take contracts is well underway and due for
completion in 2008
Technical
The PB Power technical report
highlighted a range of options available for delivering world’s best
practice emissions technology to Coolimba. The
company’s preferred technology is a fluidised bed boiler with air-cooling
and oxy-ready technology incorporated in the design. These technologies will
eliminate up to 90% of future water, sulphur and carbon emissions.
Market
The Independent Market
Operator’s 2007 Statement of Opportunities outlining the supply and
demand balance for the SWIS, points to new generation investment opportunities
from 2010/11 onwards. Reserve deficits in 2009/10 and 2010/11 are
forecast at 165MW and 353MW, respectively.
Commercial
The study demonstrates Coolimba will have an attractive internal rate of return
well in excess of Coolimba’s assessed cost of
capital, and generate returns to equity that compare favourably to comparable
projects in companies listed on the Australian Stock Exchange.
The next phase of financial analysis will
incorporate detailed capital and operating cost estimates from equipment
suppliers. A request for proposal (RFP) has already been issued to
potential equipment suppliers capable of providing proposals for EPC supply
incorporating the key air-cooled, desulfurization,
and carbon capture-ready technologies.
For further information contact:
Lindsay
Reed Robert
Kirtlan
Aviva
Aviva
Chief
Executive Officer
Director
Tel: +61
(0) 8 9367 2344
Tel: +61 (0) 8 9367 2344
Issued by:
Warrick Hazeldine
Purple Communications
Tel: +61 (0) 8 9485
1254 Mob: 0417 944 616
ABOUT AVIVA
Aviva is an integrated
energy company listed on the Australian Stock Exchange with its head office in Perth. The company is
growing a portfolio of integrated energy assets. Aviva’s
most advanced asset is the Coolimba Power project in Western Australia.
The Coolimba
Power Project will be on the Central West Coal project and is ideally located
in the northern half of the SWIS power grid to take advantage of demand growth
both in the SWIS and from new resource projects in the Mid West Region. The
location has the advantage of low cost fuel, available water, adjacent
infrastructure, existing mining lease and freehold land. Coolimba
will be a 400MW base load generator employing leading emissions technology for
water, sulphur and carbon dioxide.
Aviva is earning a 90%
interest in the Mmamantswe project in Botswana
where it is targeting a 600Mt coal deposit. The project is well positioned,
being on the South African border and adjacent to key infrastructure including,
highway, railway, and high voltage transmission lines.
Please visit: www.avivacorp.com.au
ABOUT PB POWER
As a long standing,
proven leader in the implementation of major infrastructure projects worldwide,
PB has the technical skills, personnel, support services and systems available
to ensure that a project of this nature can be delivered to a high standard. PB
offers total project delivery — from planning, engineering, and
environmental services, to project and construction management.
In Australia PB has
been in business for over 40 years, consistently demonstrating a high level of
skill in solving complex problems, and using innovation, technology and the
principles of sustainable development to optimize their clients’ project
outcomes. PB have offices in Perth, Brisbane, Sydney, Melbourne, Adelaide, Newcastle, Singleton, Canberra,
Gold Coast, Sunshine
Coast, as well as a
number of project and alliance offices.
With experience in
virtually all types of power generation - including a wide range of fuel and
plant types - PB’s Power division has
engineered over 50,000 MW of generating capacity on over 200 sites around the
globe in the past 30 years.
In Western
Australia alone PB have had engineering roles recently on Collie Power Station,
Kwinana Power Station, the Pinjarra
Cogeneration Plants Unit 1&2, the Wagerup
Cogeneration Plant, the Bluewaters coal-fired power
station development. Similarly in the renewables
sector PB has had key roles in the Alinta Walkaway and Emu Downs wind
farms.
***
Issued
by
Purple
Communications
Level
3, 28 Kings Park Road, WEST
PERTH WA 6005
Ph:
08 9485 1254 Fax: 08 6263 0455
purple@purplecom.com.au
