The $92 million expansion is expected to increase the output from the existing 288MW power station by about 45% and take 18 months to complete.

“Contracts have been signed with GE Energy for the supply of a 126 megawatt Frame GE gas turbine generator set,” Origin’s Andrew Stock said.

“Although Mt Stuart currently runs on jet fuel, this generator and our existing two turbine generators onsite can, in the future, be converted to run on natural gas.”

Queensland Minister for Mines and Energy Geoff Wilson said the expansion came at a time when the national electricity market was experiencing record growth in the demand for peaking power.

“The Mt Stuart expansion will provide additional security of supply to the north Queensland region and strengthen Townsville’s position to provide a reliable energy for future developments,” he said.