Coolimba Power holds the Coolimba project approvals and coal intellectual property that were developed as part of the process to proceed with the Coolimba Project.
The company has entered into a binding sale and purchase agreement with Westgen under which Aviva will receive A$1 million if financial close is achieved to construct a coal or gas project under the Coolimba project approvals.
The Coolimba project approvals consist of the approval to develop a 450 megawatt coal-fired and/or a 360 megawatt gas-fired power generation facility.
Lindsay Reed, director of Aviva Corporation, commented: "Aviva is pleased to have concluded the SPA with Westgen and to have found an avenue to realise potential value for shareholders out of the Coolimba Project."
Westgen has successfully developed over 2000 megawatts of greenfields power projects in Australia.
The company's focus is on developing a range of renewable energy projects in Western Australia, especially solar and biomass.
WestGen is also in a joint venture partnership to develop a 40 megawatt biomass project in the southwest of Western Australia and is well advanced with a number of large scale solar projects in the Mid-West region of the state.
Richard Harris, director of Westgen, said: "The Coolimba Project ideally complements Westgen's solar power projects in the Mid-West region, particularly using gas-fired generation to provide back-up supply to large scale solar photovoltaic.
Aviva developed the Coolimba Project from the outset and became involved in it due to Western Australia's looming energy fuel shortage and growing energy demand, especially in the Mid-West region.
In the 2010 financial year Aviva made the decision to fully write off the investment in Coolimba when Synergy, after running a supply procurement program elected not to purchase any base load capacity in the 2014-15 year.
The Coolimba Project would have sourced its coal from the Central West Coal project.
Completion of the agreement is expected this month.
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