Chairman of the Environmental Protection Authority (EPA) Bernard Bowen said the proposal by AlintaGas to construct and operate a co-generation power plant at Alcoa's Pinjarra alumina refinery could be managed in an "environmentally acceptable manner."
The plant will have generating capacity of 120-160 megawatts and supply electricity into the South-West Interconnected System.
In July, AlintaGas announced plans to build up to 10 co-generation power units at Alcoa's alumina refineries. Alcoa would then use all of the steam output from the re-generation plants while AlintaGas would sell electricity into the retail market in direct competition with state-owned electricity utility Western Power.
"Part of the EPA process involved Alinta and Alcoa undertaking a broadly-based community consultation program to identify and address the environmental issues of concern to all stakeholders," AlintaGas told the stock exchange.
AlintaGas added financial approval for the project will be considered by both boards in the first quarter of 2003, with commissioning scheduled to commence in the final quarter of 2004.