Integrated energy company ERM Power has received environmental approval from the Western Australia government for its proposed $500 million Three Springs power station and 60 kilometer gas pipeline in Western Australia.

ERM Power said in a statement that the Three Springs project is a 330 megawatt low emission open cycle gas turbine power station located three km outside of the town of Three Springs about 270 km north of Perth.

Managing Director and CEO Philip St. Baker said Three Springs was intended to serve the growing demand for electricity in the emerging mid-west mining province of Western Australia and would be available for other customers on the south west electricity grid.

"Approval from Western Australia's Environmental Protection Authority is an important milestone in the development of the Three Springs project," St. Baker said.

He said the next stage is to finalize agreements for fuel supply and electricity off-take and capacity certification from the Independent Market Operator, "which will allow us to make a final investment decision on the development."

"Once the final investment decision is made, construction would take about two years for the power station and about six months for the pipeline," St. Baker said.

Three Springs would be the third low emission power station developed by ERM Power in Western Australia after the $400 million 420 MW Kwinana power station and the $435 million 330 MW Neerub power station and gas pipeline.

The Kwinana power station is Western Australia’s largest, newest, cleanest and most advanced power plant. The 320 MW combined cycle gas-fired power station, located 30 km west of Perth in the Kwinana Industrial Estate. Kwinana was commissioned in October 2008, safely, ahead of schedule and under budget.

The Kwinana plant sources its gas from the North West Shelf, which it is delivered through the Dampier to Bunbury natural gas pipeline.

Over the life of the Kwinana project, Western Australia is expected to gain more than $1 billion from activities relating to the power station.

The Neerub power station helps meet the growing peak electricity demands for electricity in Western Australia. It delivers approximately seven percent of Western Australia's total requirements, while also reducing the state’s carbon emissions intensity. Neerub was commissioned in October 2009, and was officially opened on December 3, 2009.

ERM Power operates electricity sales, generation and gas businesses. ERM Power has built 2,669 MW of generation in six projects representing 5% of Australia’s total power generation capacity.