A Woodside spokesman confirmed that the North West Shelf operator was not among the 12 parties to have lodged an expression of interest with the WA Government owned Western Power to build new power stations for the West Kimberley towns of Broome, Derby, Fitzroy Crossing, Halls Creek and Camballin-Looma.

Woodside's decision not to participate in the new tender process leaves the Wesfarmers-controlled StateWest Power and Burns & Roe Worley Developments as prime contenders for the West Kimberley project.

The decision by Woodside to pull out has also given the backers of the contentious Derby tidal project a fresh chance to secure the deal. However, Tidal Energy chief Peter Wood said his company's tender was based on securing an additional $30 million grant from the Federal Government's remote renewable energy program on top of the $40 million in state and federal funding commitment already secured. "We're a lot more confident," Mr Wood said.

While Woodside has pulled out of the race for the West Kimberley contract, the North West Shelf looms as a possible fuel source for the project.