18 July 02 – Australian Power and Energy Ltd said on Wednesday it plans to make an initial public offering as a first step towards financing a proposed A$6 billion power project in Victoria state.
Chairman Allan Blood told reporters the IPO would take place during the next four to six months. “The next stage of raising is circa A$50 million to get us to the next level. It will be a combination of public and private and we don’t even know what the final IPO size will be,” Blood said.
The unlisted public company was awarded coal exploration rights by the Victoria state government on Wednesday for the Latrobe Valley, where it plans to construct a gas-to-liquids facility and a power generator.
“It will be a consortium in terms of the ultimate ownership (of the project), so we won’t provide all the money, obviously, because it is a very, very large project.”
Blood said the company is in discussions with several global energy companies interested in joining the venture.
Australian Power and Energy plans to begin construction in late 2004/early 2005, with commissioning of the power plant, which will produce 500 MW for the national electricity market and 500 MW for the facility’s own use, scheduled for 2007/2008. The gas-to-liquids facility will produce around 50 000 barrels-per-day of low sulphur fuels.