New gas-fired plant planned for Australia's Nickel West

Market: Electricity, Emissions, Natural gas
08/02/24

Canadian energy firm TransAlta is planning a new 150MW gas-fired power station for BHP's Nickel West project in the Northern Goldfields region of Western Australia (WA).

TransAlta proposes to build and operate up to 150MW of gas reciprocating engines and associated infrastructure at Mount Keith, about 90km north of Leinster, to augment its existing Southern Cross Energy North (SCEN) network, papers filed with the WA Environmental Protection Authority show.

The planned power station is part of BHP's plans to replace diesel-fired generation capacity currently powering part of its operations. BHP and TransAlta announced the opening of the 48MW Northern Goldfields solar and battery storage facility in November, as part of plans to reduce Nickel West's greenhouse gas (GHG) emissions.

Potential third-party operators could also be serviced by the gas-fired plant, the submission dated 7 February said, possibly including nearby lithium mines.

Scope 1 GHG emissions from the project will total 164,380 t/yr carbon dioxide equivalent (CO2e), which would come from the additional gas reciprocating engines under current load forecasts.

Proposed changes to the SCEN network including a planned 112MW wind farm that will reduce total emissions to 271,130 t/yr CO2e by 2030 or lower by 307,006 t/yr CO2e compared with a base case scenario, TransAlta said. The firm is aiming to begin works in the first half of 2024 ahead of a commissioning in late 2025.

WA is predicted to be short of gas until at least 2029 because of offshore fields in decline and low exploration spending in recent years. BHP foreshadowed production cuts at Nickel West because of a slumping average realised nickel price, which fell by 24pc from a year earlier during July-December 2023.

The WA state government is expected to announce changes to the state's 16-year-old gas reservation policy, which aimed to ensure domestic gas supplies meet demand, to revitalise the sector's waning appetite for new investment. A 2023 parliamentary review held to investigate reforming the policy is due to be tabled in the state parliament on 30 May.

By Tom Major

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