Queensland state-owned power company Stanwell Corp. has signed a 15-year deal to purchase renewable energy from Genex Power’s Bulli Creek project, which is set to become the largest grid-connected solar farm in Australia.
Under the power purchase agreement (PPA), Stanwell will buy up to 550 MW from the Bulli Creek first-stage solar project, which being developed about 150 km southwest of Toowoomba, Queensland.
The 775 MW first stage is the initial phase of a multi-stage development that is to include up to 2 GW of solar and up to 400 MW/1,600 MWh of battery energy storage capacity, with the project’s planning, environmental and heritage approvals already secured.
Genex CEO Craig Francis said the company, which was acquired by Japanese utility J-Power in August in a AUD 380 million ($256.5 million) deal, is working toward a final investment on the first stage of the Bulli Creek project before the end of 2024.
“The 15-year offtake agreement at Bulli Creek will enable Genex to progress the project swiftly toward a final investment decision later this year, delivering 775 MW of new renewable energy capacity in Queensland from 2027,” he said.
The Stanwell PPA is a welcome result for Genex after an offtake deal with mining and energy group Fortescue for up to 337.5 MW of solar energy from the Bulli Creek project expired. Fortescue had intended to use the renewable energy to power its planned Gibson Island renewable hydrogen and green ammonia project, but the company has since had a change of focus.
The agreement with Stanwell also includes a five-year operations and maintenance (O&M) contract for Genex’s 50 MW Kidston Solar Farm in northern Queensland.
The contract is the second for the recently launched subsidiary Stanwell Asset Maintenance Co. (SAMCo), which will provide O&M services for the operating solar project from December 2024.
For coal-heavy Stanwell, the deal with Genex builds on its ambition to establish a portfolio of clean energy and storage projects throughout Queensland, helping to deliver on the state government’s renewable energy targets of 70% by 2032 and 80% by 2035.
“Our partnership with Genex is an essential element of Stanwell’s portfolio transformation and will accelerate the delivery of our renewable energy pipeline in line with the Queensland Energy and Jobs Plan,” Stanwell CEO Michael O’Rourke said. “This new power purchase agreement is another exciting step toward Stanwell’s target of 9 to 10 GW of renewable energy generation by 2035.”
Stanwell, which owns the 1,400 MW Tarong coal-fired power station near Kingaroy and the 1,445 MW Stanwell plant west of Rockhampton, said it has already secured nearly 4,000 MW of renewable energy generation and firming capacity projects which are currently operational, under construction, or under development.
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