Verve Energy to Resume Refurbishment Activities at Muja Power Station

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Researched by Industrial Info Resources Australia (Perth, Australia)--The refurbishment of Verve Energy's (Perth) Muja Power Plant has gained momentum after receiving government approval for additional funds. The Muja power station is owned and operated by state-owned energy provider Verve Energy. Muja was originally commissioned with four 60-megawatt (MW) units during stages A and B, two 200-MW units during Stage C, and two 227-MW units during Stage D.

In April 2007, the four 60-MW units were shuttered. A joint venture with Inalco, a shelf company of engineering firm Kempe Engineering Pty Limited (Western Australia), was established to complete the refurbishment of the units and was named Vinalco.

Kempe, as part of Vinalco, completed refurbishment on two of the four units by the end of 2012, while refurbishment on the other two units was delayed for essential upgrades to ensure safe operations. The progress on the delayed units was later halted by the government, due to high unforseen costs surrounding the corroded boiler tubes. In June 2013, the government decided to mothball the suspended units, and began an investigation to analyse the viability of refurbishing the units.

The investigations yielded positive results that the government would recoup the costs already spent on the power plant since 2009. The government has incurred $290 million on the power plant since the beginning of the refurbishment project and has agreed to spend an additional $45 million to complete work on the two mothballed units.

Kempe left the joint venture and is no longer involved with the project. Transfield Power Services (Perth) will handle the refurbishment of units 3 and 4.

Verve Energy also has announced closure of the Kwinana power station's coal-fired units by 2015. Kwinana was initially built with six coal-fired units--two each in stages A, B and C--with a total capacity of 880 MW. The power plant was expanded during 2010-2012 with the addition of two 100-MW combustion turbines. Kwinana stages A and B units were closed in December 2008 and September 2010, respectively. Retirement of the 37-year-old Stage C unit, which is the final step in removing Kwinana from service, and is planned for 2015.

The two 100-MW gas turbines will continue operating. Verve Energy, along with General Electric (NYSE:GE), the original equipment manufacturer, plans for major maintenance on the gas turbines in the next year.

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