PLANS are under way to build a new $90 million diesel-fired power station in Merredin, near the existing substation on Robartson Road.
Perth entrepreneur Rod Jones, best known as the founder of listed company Navitas, is behind the plans.
Mr Jones is the owner of Merredin Energy, which is developing the 82 megawatt Merredin power station, and is also a director and shareholder of unlisted company Perth Energy, which recently completed a 120 megawatt power station in Kwinana.
Merredin Energy has awarded a $75 million contract to engineer, design and build the new peaking plant to Balcatta-based company CTEC.
CTEC has started the engineering phase, with construction of the two GE Frame 6B gas turbines expected to start in June.
They said the rapid-build project would employ about 500 people over its 12-month construction period.
Merredin Shire chief executive Greg Powell said the shire approved the project in 2008, but hadn’t received an application for a building licence yet.