Alinta has already agreed to buy and expand Aurora’s gas-fired station at Bell Bay, but plans for a new station were in doubt after a gas supply deal with the Basker Manta Gummy project partners – Anzon Australia and Beach Petroleum – fell through.

However, in a statement today, Alinta’s Jim Hennessy said the gas supply had been secured and the project would go ahead following the deal with Aurora. It is understood that gas for Tamar Valley will now be provided by reallocating gas from Alinta's existing eastern Australian assets.

“This is the final commercial hurdle for the power station and means we are proceeding with the project, including finalisation of environmental approvals,” Hennessy said.

“This is the first private sector generation in Tasmania and will create up to 300 jobs during construction and will employ about 22 permanent staff when operational.”

The Tamar Valley project will comprise two separate power plants: a 200-megawatt combined cycle gas-fired power station and a 180MW open cycle gas-fired power station. The 180MW station would allow Alinta to provide back-up electricity when required.

Hennessy said Alinta was confident of securing environmental approvals for the project.

“The base-load plant will be a high-efficiency, gas-fired combined cycle power station which utilises best practice technologies,” he said.

“The use of modern technologies means the emissions levels for the proposed power plant are considerably lower than existing power plants.

“The closure of the Bell Bay thermal units in 2009 and replacement with combined cycle technology will also lead to a substantial improvement in the Tamar Valley air shed and a reduction in Australia’s greenhouse gas emissions.”