The Australian government has maintained its faith in SunCable’s plans to build one of the world’s largest solar and battery energy storage projects, complete with the world’s largest subsea transmission link, extending the major project status for the Australia-Asia PowerLink (AAPowerLink) proposal.
SunCable is planning to develop a giant solar and battery energy storage complex on a 12,000-hectare site at Powell Creek in the Northern Territory’s Barkly region and transmit the renewable energy via a high voltage direct current (HVDC) transmission line to the Darwin region and then on to Singapore via a subsea HVDC cable.
The AAPowerLink project was originally to include 20 GW of solar and up to 42 GWh of battery energy storage but the initial focus has now shifted to create approximately 6 GW of power “for both domestic and international markets, providing enough energy to power around 4.2 million homes.”
Major project status simplifies regulatory applications and approvals for projects that are valued at more than $50 million, face complex regulatory approval challenges, and that are considered “of strategic significance to Australia.” It typically lasts three years.
SunCable said the federal government’s decision to renew its major project status is “a strong endorsement of AAPowerLink’ role as a project of national significance, and the progress we are making.”
“This recognition reflects the pivotal role that AAPowerLink will play driving structural economic transformation in northern Australia, catalysing industrial growth and regional development in the NT, and creating new export opportunities for Australia,” the developer said in a Linkedin post.
“We have a clear vision for a sustainable energy future, strong government support, and a focus on creating legacy partnerships with Indigenous, community and other key stakeholders that will bring this vision to life.”
The AAPowerLink project – taken over by billionaire Mike Cannon-Brookes’ private investment house, Grok Ventures, in 2023 after a falling out with former project partner Andrew Forrest – has been the focus of speculation in recent weeks with reports that it had failed to secure funding in its maiden USD 100 million ($153.47 million) capital raising. The project has also dealt with a string of executive exits, adding to uncertainty over the development.
In the wake of those reports, SunCable said that the capital raise remains alive and is “well progressed with several parties, including investors who will bring the capabilities to accelerate the development of the project.”
“The capital we are raising will fund the next stages of development, which include preparations toward enabling the project to reach financial close,” the company said.
SunCable has said a final investment decision on the $40 billion-plus project is expected in 2027, with construction commencing soon after.
The AAPowerLink project is one of four projects awarded major project status last week by Australia Science and Industry Minister Tim Ayres as part of the government’s strategy to bring online renewable energy and modernise the country’s energy system.
“By granting major project status to key renewable energy initiatives, the Australian government is strengthening its commitments to a cleaner future,” Ayres said.
“Backing in renewable energy projects strengthens and diversifies the local supply chain while directly creating regional job opportunities and attracting further investment.”
Other projects awarded major project status is Diatreme Resources’ $535 million Northern Silica sand mining project near Cairns in north Queensland.
Diatreme says the project will produce three to five million tonnes of high-purity silica sand for 25 years for domestic manufacturing of solar panels, silicon wafers and high-end electronics.
Cobalt Blue secured an extension for its Broken Hill cobalt project in New South Wales that aims to produce battery grade cobalt chemicals. Cobalt Blue aims to establishone of the first domestic critical minerals refining operations and provide enough product to make batteries for about 375,000 electric vehicles per year.
Also awarded major project status was the Bonaparte Carbon Capture and Storage project, located offshore northwest of Darwin. The Inpex-led Bonaparte joint venture is to support emissions reductions in hard-to-abate sectors such as metal and chemical refining.
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