Wellington-headquartered Infratil told the NZX on Wednesday that its wholly owned subsidiary Infratil Energy Australia had negotiated an agreement to buy the 39MW plant from the Cummins Engine Company (Australia).
The power station – consisting of 24 reciprocating diesel generators units, each of 1.6 MW rating – offered high reliability and rapid start-up capability, proving back-up generation during times of high electricity prices, according to Infratil.
Income from the plant would come from the sale of electricity price caps. The plant had been purchased at an unspecified discount to its replacement cost of approximately A$25 million. It would continue to be operated and maintained under contract by Cummins and an offtake contract would give it revenue certainty over the medium term.
Angastron is Infratil's first Australian generation asset.
Infratil Energy Australia also undertakes all wholesale gas and electricity purchasing for Infratil's Australian electricity retailing ventures, Victoria Electricity and South Australia Electricity.
Infratil late last year moved upstream by taking an 11% stake in fellow NZX-listed oil and gas explorer Austral Pacific Energy, for a total investment of US$6.14 million, becoming Austral's biggest New Zealand shareholder.
