Horizon Power has been awarded the contract to provide energy to Roy Hill’s Port Hedland port facility following a competitive tender process.
The WA Government approved the agreement between Horizon Power and Roy Hill on in October, and the Power Purchase Agreement was signed by both parties on November 30, 2016.
Early design and procurement work on the energy project has already begun and Horizon Power has contracted Zinfra Group to undertake the engineering, procurement and construction work.
Horizon Power Managing Director Frank Tudor said the company was delighted to have been successful in securing the competitive tender to supply energy to a world leader in iron ore production.
“Horizon Power is committed to a more coordinated and efficient North West Interconnected System and securing this contract, as well as setting up the private-public partnership with TransAlta last year, will help us achieve this vision,” Mr Tudor said.
“Roy Hill will be a beneficiary of the Hedland Power Precinct we have set up and is the third major customer of the TransAlta Energy station coming online next year.
“This Precinct has the capacity to connect multiple users and improve integration and efficiency on the NWIS well into the future.”
Up to 50 new jobs are expected to be created during the construction phase, which involves two express feeders or cables connecting Horizon Power’s South West Creek (SWC) substation to the Roy Hill substation.
The five kilometre cable will need to be bored under BHP and Roy Hill’s rail line in a delicate operation using a 600 millimetre borer.
The feeders will deliver a 20MW power supply to the port operation, which can be expanded to 25MW if required.
Site works will begin in the first quarter of 2017 and the project is due to be completed by early 2018.
Horizon Power was given Cabinet approval to invest $24 million in transmission connection infrastructure and network upgrades.
No new generation plant is required to supply the energy, as Horizon Power will be able to meet the energy requirements of the port from its existing generation portfolio thanks to the capacity which will be available from the new TransAlta power station due to come on line next year.
