Australia's CS Energy Plans Construction of 750 Megawatt Kogan Creek Coal-Fired Power Station

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). CS Energy Limited (Brisbane, Australia) is a government-owned corporation established in 1997, following the restructuring of the Queensland electricity industry. The company has awarded a turn-key engineering, procurement, and construction (EPC) contract to a consortium consisting of Siemens Power Generation (Erlangen, Germany) (NYSE: SI) and Clyde Babcock-Hitachi (Australia) Pty Ltd (Gladstone, Australia) for a 750 megawatt coal-fired power station. The project will be a grassroot coal-fired supercritical boiler driving a 750-megawatt steam turbine/generator, and it will be the largest single generating unit in Australia. The power plant will be located in Kogan Creek, in Queensland's southeast region and will be supplied with coal from a four-kilometer long conveyor belt system to be built from CS Energy's own 300 million ton per year Kogan Creek coal mine, which will also be developed as part of the project.

This project is being built under the Queensland's state government's Clean Energy Policy, and the total value will exceed $1.1 billion, with the construction of the power plant, coal mine, and conveyor belt combined. When finished it will be the lowest cost black coal-fired power station in Queenland's National Electricity Market, emitting 25% less carbon dioxide than most of Australia's coal-fired power stations.

Siemens will be responsible for the overall planning of the project and for the installation of the steam turbine generator (varioplant 700 technology), the electrical and mechanical equipment. It will also be responsible for the coal feed system, ash removal system, instrumentation and control system, as well as auxiliary and supporting systems. Clyde Babcock-Hitachi will install the supercritical coal-fired boiler (2.4MM lb/hr, 2400 psig @ 1000F), which will be constructed under a Siemens licensing agreement. The power project will be built on a fast-track program and will operate as a base-load power station, generating seven days a week, 24 hours a day. The project is scheduled for construction kick-off in first quarter 2005, with commercial operation by first quarter 2007, if the project goes according to plan.

CS Energy Limited is one of the fastest growing electricity companies in Australia. Since 1977, it has increased its assets base by more than 40%, and now operates the largest power station portfolio in Queensland. It generates 3000 megawatts of electricity for the national electricity market and has total assets of over $1.3 billion.

Siemens Power Generation Group is a top player in the Global Power Plant development field. It offers design and construction of fossil-fuel generation plants, utilizing its manufactured gas and steam turbines. It has installed more than 600,000 megawatts of generation equipment worldwide. Siemens has over $8 billion in total sales as of 2003 and has over 2,000 employees.

Industrialinfo.com has been tracking this project since 1998, when it was being developed under Consolidated Electric Power Asia Limited.

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