UGL has been contracted by AGL Energy to build a new cogeneration facility at Qenos’ production facilities in Altona, Victoria.

Qenos Chief Executive Jonathan Clancy said that the approximately $A45 million project will involve the replacement of a steam boiler with a 21 MW cogeneration plant, using a turbine supplied by Solar Turbines International.

“The replacement of one of our steam boilers with a 21 MW cogeneration plant will result in a significant improvement of our energy efficiencies,” Mr Clancy said.

“The project will result in a reduction of approximately 100,000 t of greenhouse gas emissions per year.”

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The new cogeneration unit will also be able to produce over a third of the plant’s steam requirements, and when coupled with a heat recovery steam generator will produce up to 88 t of steam per hour.

AGL will become the sole supplier of natural gas to the site to operate the gas turbine and balance of plant. The cogeneration plant and balance of plant is estimated to consume approximately 4.5 PJ/a of natural gas.

AGL said that construction, which is estimated to generate approximately 40 jobs, is expected to commence in September 2011, and that the cogeneration plant will be operational in late 2012.

Meanwhile, construction has started at the Mungullah Power Station, located at Brown Range in Western Australia.

The $A73 million gas-fired power station has a generation capacity of 18 MW and was designed to meet the needs of the Carnarvon community.

Operated by Horizon Power, the first power supply is scheduled to be produced in early 2012, incorporating dual-fuel technology, using both gas and diesel fuel sources to produce electricity.

An existing dual-fuel power station is located closer to the community and a gradual transition will be made to the Mungullah Power Station to reduce noise pollution, a Horizon Power spokesman said.

West Australian Energy Minister Peter Collier said “Mungullah Power Station will be more efficient, more environmentally friendly and significantly quieter than the existing power station.

“It has also been designed to allow for the addition of renewable energy expansion in the future.

“As energy security also underpins development, I am confident this new state-of-the-art power station will give industry looking to expand in the Gascoyne region the confidence that Horizon Power is ready and able to support them,” Mr Collier said.