State energy minister Eric Ripper gave formal approval for state-owned Western Power to enter into an 18-year power purchase agreement with independent power producer Burns and Roe Worley Developments.Burns and Roe Worley Developments will construct a 330km gas pipeline from Kalgoorlie to fuel the 23MW power station at Esperance, 700km south-east of Perth.
"We expect this project to slash greenhouse gas emissions by up to 30 percent compared with Western Power's existing diesel power station," Ripper said.
The Esperance power station, which is expected to be operational by 2004, will supply more than a quarter of Western Power's regional customers who are not connected to the state's south-west power grid.