Aviva Corporation may get $1 million back on its mothballed Coolimba coal-to-power project near Geraldton under a sales agreement with renewable power company Westgen.
The sale includes project approvals and intellectual property that was developed as part of the planning for the 450-megawatt coal fired and/or 360-megawatt gas-fired power generation facility.
But Aviva will only get $1 million if the project goes ahead under existing approvals.
The company has already written off the project from its books.
Aviva director Lindsay Reed said the company was pleased to have concluded the sale with Westgen and to have found an avenue to realise potential value for shareholders.
Westgen director Richard Harris said the project complemented the company's solar power projects in the Mid-West, particularly using gas-fired generation to provide back-up supply to large scale solar photovoltaic.
Aviva promoted Coolimba as a solution the growing demand for power from the Mid-West region.
But the project stalled when Synergy, after running a supply procurement program, decided not to purchase any base load capacity in the 2014/15 year.Aviva shares were up half a cent, or 3.85 per cent, to 13.5 cents at 10.20am.
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