Power company, Enerji (ASX:ERJ) has entered into an agreement to supply power to Poseidon Nickel (ASX:POS), the developer of the one of the largest high grade nickel sulphide deposits in Australia.
Poseidon's Mt Windarra mine is located 260 kilometres NNE of Kalgoorlie in the northern goldfields of Western Australia.
First concentrate from the Mt Windarra mine has a timeline of 2013. The Mt Windarra mine currently being refurbished by Poseidon.
Under the MoU, Enerji will provide assistance to Poseidon on aspects of its feasibility study relating to power generation and specifically the implementation of a waste heat recovery system based around an Opcon Powerbox.
Following a successful feasibility study and subject to some site conditions being met, Enerji and Poseidon will enter into negotiations for a power purchase agreement.
Construction of the powerhouse and the associated waste heat recovery system would commence in the second half of 2012.
The addition of an Opcon Powerbox will provide up to 700kW of fuel and emissions free power to Poseidon’s Windarra powerhouse.
This power will assist in meeting the additional power requirements for its recently announced plans to double mine throughput as well as reducing fuel consumption and green house gas emissions.
The Enerji solution to waste heat recovery aims to minimise environmental footprints.
Enerji is emerging green power utility company focussed on commercialising the Opcon Powerbox in Australia.
The Opcon Powerbox cogeneration technology transforms waste heat into electricity and creates significant energy cost savings and reduced CO2 emissions for its customers.