Origin has development approval for a 500MW gas-fired power station on the Braemar site. Origin said that, in parallel, it has continued to develop its coal seam gas reserves, both in the Spring Gully area, and in the Walloons area, closer to Braemar.

The Darling Downs plant will be based on the same configuration as Origin’s Spring Gully facility and the company has asked the short-listed tenderers for the Spring Gully project to submit prices for the Braemar plant.

Meanwhile, work on the Spring Gully project will continue. This will ensure that Origin has the necessary development approvals and costing for both sites before making a final investment decision, according to Origin managing director Grant King.

“Accelerating the development of the Darling Downs Power Station ensures we are able to select the site and sequence of development that will create the most economically attractive project for Origin,” he said.

“The development of the power project will accelerate the development of our coal seam gas resources, and, together with our peaking power stations at Roma (80 MW) and Mt Stuart (288 MW) and offtake rights from the Wambo peaking Power Station (450 MW), create a diverse and competitive portfolio of generation to support our electricity retail business in Queensland.

“Development at either site will use very efficient, combined cycle gas turbines which, together with the use of coal seam gas for fuel, will ensure they have very low CO2 emissions compared to other thermal power stations.”

The project is on track for a final investment decision in the second quarter of 2007, according to King. The outcome of tender negotiations and the impact of current and potential schemes for reductions in greenhouse gas emissions would be important considerations in this decision, he said.