BLUEWATERS Phase 2 will supply 200MW of power to Synergy over the next 15 years.
An electricity supply contract was signed off by Energy Minister Francis Logan on Friday.
The contract promises to see Bluewaters feeding into the state’s main power grid to deliver electricity by late 2009.
Bluewaters Phase 1 is already well advanced and is due to come online in 2008 to power Boddington’s new gold mine.
Griffin Energy executive general manager power generation Wayne Trumble said through increased employment and economic activity, the South West was already benefiting from the project and would continue to do so, enhancing the future of Collie coal.
Collie-Wellington MLA Mick Murray said the contract was a great Christmas present for Collie and congratulated Griffin Coal in its initiative in building the privately-owned power station.
“This is underpinning Collie’s future,” Mr Murray said.
“There is an energy and business confidence in the town which we haven’t seen since the mid 1980s.
“With Muja A and B retired, it is good to see the old plant replaced with new.
“This is further proof on the State Government’s commitment to the town of Collie.”
However not everyone is happy about the new contract.
South West MLC Paul Llewellyn expressed concern about the purchase, claiming there was a huge discrepancy between the government’s rhetoric over climate change and their actions.
“The Premier has stated that he wants to see a 60 percent cut in greenhouse emissions, but buying 200MW of electricity from a dirty source such as Bluewaters will result in a two percent increase in emissions,” Mr Llewellyn said.
“It’s very simple; unless and until carbon capture and storage is scientifically proven, no new coal-fired power stations should go ahead.
“The government should instead be spending its electricity investment dollar on proven renewable technologies.”
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Mr Llewellyn said the Environmental Protection Agency’s 2005 advice on Bluewaters stated that greenhouse offsets of 620,000 tonnes per annum should be provided.
A Griffin Group spokesman said Griffin was fully aware of its responsibilities and it had already established an offset program.
He said Griffin was a joint venture partner in the Emu Downs wind farm, which provides energy for Kwinana’s desalination project and it was also contributing to the East Collie river diversion program to contribute to lowering the salinity of Wellington Dam.
He said a tree planting program across its agricultural properties and its mining lease areas recognised Griffin Energy’s and the Griffin Group’s contribution to greenhouse gas abatement.
“Griffin is already making those contributions,” the spokesman said.
“It is making the best efforts to lower its greenhouse footprint and will continue to seek to lower its greenhouse footprint in regards to using the best available technology for the development of Bluewaters power station.”
Mr Logan said another offset was the retirement of Muja power station’s A and B units earlier this year.
He said Bluewaters 2 would emit about 30 percent less greenhouse gases than the retired units had.
Last week Mr Murray also welcomed a $119 million commitment by Agriculture and Forestry Minister Kim Chance to extend the Natural Heritage Trust tree planting program.
Under the program, there have been 15 million trees planted in WA over the past three years, with a further five million to be planted next year. Extending the program will now mean that by 2012, a total of 28 million extra trees will have been planted since 2005.
“Tree planting can play a significant role in offsetting greenhouse gas emissions,” Mr Murray said.