Queensland state-owned power company Stanwell Corporation has signed a 15-year deal to purchase renewable energy from Genex Power’s Bulli Creek project that is set to become the largest grid-connected solar farm in Australia.
Under the power purchase agreement (PPA), Stanwell will purchase up to 550 MW from the Bulli Creek stage 1 solar farm being developed about 150 kilometres southwest of Toowoomba in Queensland’s Western Downs region.
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 Chief Executive Officer Craig Francis said the company, acquired by Japanese utility J-Power early last month in a $380 million (USD 256.5 million) deal, is working towards 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 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 far north Queensland.
The contract is the second for the recently launched subsidiary Stanwell Asset Maintenance Company (SAMCo), which will deliver O&M services for the operating solar farm 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 towards 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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