Oswal goes cold on solar plant

Australian
Tuesday 10/3/2009 Page: 18

FERTILISER baron Pankaj Oswal has reportedly scrapped plans to build a $1.5 billion solar energy plant in Western Australia's Pilbara region after being unable to find suitable land. The renewable energy project, which appears to only be in its nascent stages, will instead be shifted to South Australia's Coorong shire, 100km southeast of Adelaide.

Reports of the move came as the federal Government put the finishing touches on the draft legislation for its emissions trading scheme, which is slated for release today. Mr Oswal, who is best known for his failed attempts to float his Burrup fertiliser company, first raised the prospect of constructing a large-scale solar plant in the Pilbara in the middle of 2008.

Local government sources in the region however said that apart from preliminary discussions, very little work on the idea had progressed since that time. Mr Oswal had been seeking land which was close to existing transmission infrastructure, but not vulnerable to the cyclones which annually lash the West Australian coastline.

Horizon Power Energy, the government utility which supplies electricity to regional areas including the Pilbara, had entered a non binding memorandum of understanding with Mr Oswal to conduct a feasibility study into the development of a 100MW solar thermal power station in the Pilbara hinterland.

Horizon Power had also agreed to consider a potential off-take arrangement to underwrite the project. The relationship between the parties described was not a partnership, nor did it limit Horizon Power to deal exclusively with Oswal Power," a spokeswoman said yesterday.

"Horizon Power will continue to work with any proponent to investigate the commercial and technical feasibility of large-scale renewable generation in its service area." Pilbara Regional Council executive officer Adrian Ellson said the decision to proceed with the project in South Australia was a letdown.

"The PRC is disappointed ... we would have much preferred to have it here," Mr Ellson said. Spokespeople for Mr Oswal and the Coorong District Council were not available yesterday.