Shares in Forge Group were higher after the contractor announced it had won a $125 million Horizon Power contract to build, operate and maintain a new power plant near Port Hedland.
The open cycle power station will operate in dual fuel configuration utilising four General Electric gas turbines.
The plant, to be built 8km south of Port Hedland, will provide power to the North-West Interconnected System during periods of peak energy consumption.
Site works will commence as soon as possible with completion scheduled for later this year.
The operation and maintenance contract will begin in January next year.
Forge Group managing director and chief executive David Simpson said the contract was based on the group's capacity to deliver a fully-integrated solution drawing on the capabilities of multiple business units.
"This contract provides further diversification of our current portfolio into operations and maintenance in the power sector," he said.
Forge shares were up 30 cents, or 5.79 per cent, to $5.47 shortly before the close of trade.