The renewable energy offshoot of British oil and gas giant BP has entered into a long-term power purchase agreement (PPA) to provide solar energy to power operations at Newcastle Coal Infrastructure Group’s (NCIG) coal export terminal at Kooragang Island.
The solar energy will be sourced from the 450 MW Goulburn River Solar Farm being built by Lightsource BP across a 793-hectare site at Merriwa, about 200 kilometres northwest of Newcastle in the Upper Hunter region of New South Wales (NSW). The project will also include an eight-hour duration battery energy storage system to shift renewable energy supply to cover peak demand periods during nighttime hours.
Lightsource says once operational, the $880 million (USD 560.7 million) project will be capable of generating enough electricity to meet about 4% of NSW’s current demand.
NCIG said the Goulburn River Solar Farm PPA will provide enough solar energy to power its Kooragang Island facility with 100% renewable energy from 2030 onwards, with the deal representing a key step forward in its commitment to transition its entire operation to renewables.
The coal export terminal operator uses about 80 GWh of electricity annually, currently sourced from the national grid and partially offset using large generation certificates (LGCs).
“Not only will this PPA supply our facility with reliable, cost-effective renewable energy, but it also strengthens our ongoing commitment to reducing our carbon footprint and contributing to the long-term sustainability of the region,” NCIG Chief Executive Officer Aaron Johansen said.
Johansen suggested the PPA would also serve as an example for industrial energy consumption, demonstrating the potential of solar power in transforming the energy landscape of the region.
“This PPA not only secures long-term pricing for our energy needs but also paves the way for other businesses in the region to make similar commitments toward a cleaner, more sustainable future,” he said.
The PPA is the latest success for the Goulburn River Solar Farm. it was recently announced as a successful project under the Australian government’s Capacity Investment Scheme (CIS) and in late 2023, Lightsource bp was awarded a long-term energy service agreement (LTESA) through the NSW government’s long-duration energy storage tender.
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