Eneabba has signed an agreement with the state's Department of Agriculture and the Environmental Protection Authority to establish a 1200ha conservation area around the power station site.

This area, which will be preserved to protect areas of native vegetation and remnant bush, represents more than 67 percent of the total site for the power station, and Eneabba is seeking to register it as a recognised carbon-sink offset. Credits already equate to 30.5MW worth of offsets.

Centauri has received all planning and regulatory approvals and Eneabba is aiming to be delivering power to customers in the first half if 2009.

The plant is to be sited east of Dongara and is aimed at supplying the growing iron ore industry inland of Geraldton, an area with relatively poor power infrastructure.

“It is located in a booming region facing power shortages,” managing director Mark Babidge told the Western Australia Energy Conference last week.

According to Babidge, the company was negotiating with potential customers and had a memorandum of understanding with West Australian utility Verge Energy for gas swaps that would give operational flexibility.

A gas supply contract being finalised with North West Shelf Producers, but Eneabba is also eyeing what it called “highly prospective secondary – and synergistic – projects in CSM”.

The company holds 10 exploration permits and has signed a farm-in agreement signed with Westralian Gas & Power.

“The assessment of all areas is complete and bench study began in June,” Babidge said.

Exploration drilling is expected to being next year.