Operator of power generation projects Energy Developments Ltd
(ASX:ENE) says it has entered into a heads of agreement with BHP Billiton Illawarra Coal for a new gas conversion agreement for its 97 mega watt Appin and Appin West Power Stations.
The two power stations utilise BHP Billiton supplied Waste Coal Mine Gas in electricity generation.
The heads of agreement provides the company with a new gas conversion agreement for four years to January 2016 and extended tenure on the current sites for an additional ten years from January 2016 to January 2026.
Energy Developments says it is proposed that the new four year gas conversion agreement will optimise generation capacity to BHP’s future mine plan and positions Energy Developments to maximise the value surplus capacity.
Managing Director Greg Pritchard says the agreement underscores the durability of Energy Developments revenue streams and capacity to add value to existing projects.
Energy Developments recorded a profit for the year ended June 30, 2009.
