UPDATE 1-TransAlta to build $536 mln power station in Australia

Mon Jul 28, 2014 8:28am EDT

(Adds details, share close)

July 28 (Reuters) - Canadian power company TransAlta Corp said it would build a A$570 million ($536 million) gas power station in South Hedland, Western Australia.

The 150-megawatt (MW) power station will supply to customers of state-owned Horizon Power in the Pilbara region and to Fortescue Metals Group Ltd's port operations, TransAlta said on Monday.

The combined cycle gas power station, to be built on an existing site at Boodarie Industrial Estate, will likely be in service by 2017.

TransAlta, which also operates in Canada and the United States, was selected as the preferred bidder for the project in April.

The company said Western Australia will contribute to 16 percent of its earnings before interest, taxes, depreciation and amortization by 2017.

Calgary, Alberta-based TransAlta's stock has fallen about 6 percent this year on the Toronto Stock Exchange up to Friday's close of C$12.69. ($1 = 1.0635 Australian Dollars) (Reporting by Sneha Banerjee in Bangalore)