APA to work on Aussie cogeneration plant

APA, a leading Australian energy infrastructure company, has signed an agreement with Arafura Rare Earths to commence early works for a proposed cogeneration plant, aiming to supply energy to Arafura's Nolans rare earth project in central Australia, APA said on July 31.

The company will undertake engineering design and project development planning for the cogeneration plant, which will consist of a gas turbine generator to supply electricity and a waste heat recovery system to provide steam.

The Nolans project, situated 135 km north of Alice Springs, includes plans for a rare earth mine, processing plant, and related infrastructure.

The cogeneration plant is envisaged to be linked to APA's nearby Amadeus Gas Pipeline. However, the project's realisation and the associated long-term power purchase agreement are subject to further negotiations between APA and Arafura, along with necessary approvals from both parties.

Arafura has already secured significant offtake agreements with a global electric vehicle manufacturer and a wind turbine manufacturer, APA said.

Early works for the project are set to start immediately and are expected to be completed by early 2024.