Genex Power (ASX:GNX) via its wholly owned subsidiary has today entered into a 25-year solar power purchase agreement (PPA) for the up to 2GW Bulli Creek Solar and Battery Project (BCP) with a subsidiary of Fortescue Metals Group (ASX:FMG).
The $215 million market capitalisation company reports BCP is being developed by Genex in partnership with Electric Power Development Co., Ltd (J-POWER), with Solar Choice as a co-developer.
The agreement provides for offtake of up to 337.5MW of solar energy and large-scale generation certificates from the BCS at a fixed nominal price over the 25-year period of the PPA.
Fortescue intends to utilise the solar energy procured under the PPA for the operation of a green hydrogen and green ammonia facility in connection with its Gibson Island project.
Commenting on today’s announcement, Genex CEO Craig Francis says the announcement marks a major milestone, not only for Genex’s 2.25GW development portfolio, but also for the Australian energy transition to renewables.
“Genex acquired the up to 2GW Bulli Creek Battery and Solar Project in August 2022, initially envisioning a stand-alone battery energy storage system as a first stage for the project“
“Genex acquired the up to 2GW Bulli Creek Battery and Solar Project in August 2022, initially envisioning a stand-alone battery energy storage system as a first stage for the project.
However, securing this long term 25-year offtake agreement with Fortescue for 337.5MW of solar capacity at Bulli Creek has reshaped the first stage of the project into a large-scale solar farm. Genex and J-POWER anticipate the agreement with Fortescue will underpin a solar farm capacity of 450MW, with the long-term nature of the agreement highly attractive for prospective project financiers.
Discussions are continuing with external parties for further offtake to support a solar farm capacity of up to 775MW for this first stage of the project. This would position the Bulli Creek Solar Farm as the largest solar farm connected to the National Electricity Market.”
Genex Power has a portfolio of more than $1 billion of renewable energy generation and storage projects across Australia. The company’s flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro.
The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects.
The 50MW Jemalong Solar Project (JSP) is located in New South Wales and provides geographical diversification to Genex’s portfolio. JSP was energised in December 2020 and is now fully operational.
Genex’s first battery energy storage system, the 50MW/100MWh Bouldercombe Battery Project (BBP) located in Central Queensland achieved contractual close in February 2022 and achieved energisation in June 2023.
Write to Adam Orlando at Mining.com.au
Images: Genex Power
