RCR to build power station in Queensland

Engineering and infrastructure firm RCR Tomlinson has established a new subsidiary to build a power station in the Galilee basin in Queensland, with Indian company Adani Mining lined up as a foundation customer.

Under the terms of a memorandum of understanding it signed with Adani, RCR will provide about 150 megawatts of electricity to its Carmichael coal mine project in the Galilee basin.

“RCR has commenced the early contractor involvement process for the provision of this power working with Adani Mining in a collaborative open-book approach,” RCR said in a statement.

“The ECI is expected to be completed by the first quarter of 2015.”

Following completion of the ECI work, and certain terms are agreed upon, the two companies will enter into a build, own, operate and transfer agreement for the power station.

RCR managing director Paul Dalgleish said the proposed power station would use environmentally friendly fluidised bed technology to maximise efficiency and provide a reliable power supply.

He said the power station would provide the company with an opportunity to leverage its acquisition of the AE&E business in 2010.

RCR shares were down nearly 8 per cent to $1.98 per share at the close of trade.