Shanghai Electric has confirmed its commitment to the joint development of a gas-fired power station in South Australia with local energy company, Leigh Creek Energy (LCK), and has expanded the scope of the project to include renewable energy.
The two companies completed a Heads of Agreement (HoA) on 6 April 2016. This HoA formally expires in March 2017 but following the recent letter from the president of Shanghai Electric it is expected to be extended.
Both LCK and Shanghai Electric are committed to this project, which has the potential to augment a stable long-term base load power supply for South Australia.
The initial concept of the HoA was the development of a gas-fired power station, but the scope has now been widened after Shanghai Electric expressed its desire to expand the project to include a combination of gas and high efficiency coal-fired power with solar and/or wind power.
The aim of this is to provide a medium and long term solution to the power issues in South Australia. Future studies will be broadened to reflect this expanded scope.
The combination of gas, high efficiency coal and solar/wind power effectively creates a low emissions baseload energy supply for South Australia.
CEO of Leigh Creek Energy, Phil Staveley, said, “This reconfirmation of the desire of LCK and Shanghai Electric to cooperate and partner on a major power generation project in South Australia to provide baseload power capability could never be more important to South Australia as it is now.
“The ongoing development of this significant infrastructure project continues to mature as we move to deliver a low carbon emission and long term, reliable power supply option for South Australia.”