Origin Energy Ltd
(ASX:ORG) will today sign an agreement with the governments of Papua New Guinea and Queensland for the potential development of a renewable hydro electricity project.
The oil and gas producer will sign the memorandum of cooperation along with its 50:50 joint venture partner PNG Sustainable Development Program Ltd, and says the project will provide low carbon baseload electricity to Papua New Guinea, northern Queensland and Australia’s national electricity market.
Origin advises the proposed development would capture power of existing river flows and have the capacity to generate around 1800 MW of renewable baseload electricity.
Electricity generated using hydro-electric technology emits close to zero carbon emissions.
Queensland Premier Anna Bligh says if successful the project will be a massive win for both Papua New Guinea and Queensland.
A feasibility study of environmental, sociological and engineering aspects is expected to be completed by 2012.
Origin Energy posted a $680 million profit in fiscal 2010, it says the back of high generation revenues and an expanded portfolio.
