At a ceremony yesterday, attended by Queensland Premier Peter Beattie, the first of two 420 MW generating units was dedicated at the Callide C power station, Queensland by a joint venture between InterGen and CS Energy. The coal-fired power project uses advanced -cycle technology and is costing $800 million.

Callide C is located adjacent to CS Energy’s existing Callide Power Station complex near the town of Biloela in central Queensland. A second 420 MW unit at Callide C is scheduled for completion in December 2001, InterGen said in a press statement.

“We’re very pleased to be expanding our investment in Queensland and proud of the fact that Callide C will be the most efficient and lowest emission coal-fired project in Australia,” said George Grant, InterGen’s senior vice president and regional executive.

“Callide C is a first in many respects. It is the first coal-fired power project in Australia to use advanced-cycle technology. It is also the first time public and private sectors have successfully completed a joint venture power project in Queensland,” said CS Energy chairman Stephen Lonie.

“When it enters commercial operations, Callide C will be the lowest marginal cost generator in Queensland and among the lowest in the Australian market. Callide C will also be the cleanest coal generator due to the installation of leading edge boiler technology that is the first of its type in Australia,” said Carlos Riva, President and CEO of InterGen.

A syndicate of National Australia Bank, Bank of America and BNP Paribas, supplied the project finance facility of $325 million that supports Callide C.

CS Energy will provide operation and maintenance services to Callide C under a commercial contract with the joint venture. Energy generated by Callide C will be traded into the national electricity market by a jointly owned company, Callide Power Trading. CS Energy is one of three state government-owned generating companies in Queensland.

InterGen is a Shell-Bechtel venture. It has power generation projects operating, under construction and/or in advanced development in the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Turkey, Brazil, Australia, United States and the Netherlands and is developing projects across the globe.