Neoen is set to build the 157MW Kaban wind farm in Queensland, Australia, after signing a 110MW power purchase agreement with CleanCo Queensland.
The wind farm near the town of Ravenshoe, 80 km south west of Cairns, will consist of 28 turbines connected via a new substation into the existing 275 kV overhead transmission line operated by Powerlink Queensland, with energy generation scheduled to commence in 2023.
Northern Australia Infrastructure Facility is in its due diligence phase to support the A$370 million investment by Neoen, which is expected to create more than 150 jobs in the region of Far North Queensland when construction begins in 2021.
Neoen will be the long-term owner and operator of the project and said it is working closely with the Jirrbal people, traditional owners of the land on which the project is located, and is committed to delivering a range of targeted business, employment and community development outcomes.
The establishment of a Community Benefit Fund will provide opportunities for local community-building initiatives totalling A$50,000 each year for the lifetime of the project.
This is the second deal this year between Neoen and Queensland’s publicly-owned electricity company CleanCo after the signature of 352 MWp power purchase agreement for Western Downs Green Power Hub, Australia’s largest solar farm.
It is also CleanCo Queensland’s third renewable energy offtake agreement since its establishment in December 2018, and it will contribute to the energy needed for CleanCo Queensland to meet its target of 1GW of new renewable generation by 2025.
Neoen Australia’s managing director Louis de Sambucy said: “We are delighted to be working with CleanCo and Powerlink on our second Queensland project together.
“This agreement underscores our deepening involvement in the State’s clean energy transition, and we are proud to be supporting Queensland’s progress towards its ambitious target of 50% renewable energy by 2030.”
The wind resource in Far North Queensland generates an electricity profile that is different and highly complementary to southern regions of the National Electricity Market, the company added.
CleanCo Queensland’s chief executive Maia Schweizer commented: “We are proud to be involved in this new renewables development which will continue to improve electricity affordability for Queensland.
“Large energy users in Queensland are increasingly looking to power their businesses with affordable renewable energy, which gives us the confidence to continue to invest in projects like Kaban.”
Powerlink Queensland chief executive Paul Simshauser said it looked forward to working with Neoen to deliver connection works for the project.
He added: “We are also excited to provide system strength support for this project, which will help further unlock the potential of the valuable North Queensland renewable energy resource.”
NAIF’s chief executive officer Chris Wade said: “NAIF is excited about the potential benefits that the Kaban Green Power Hub can bring to Far North Queensland.
“Our mission is to support projects and businesses in northern Australia to facilitate economic growth and help catalyse private sector investment.
“As such NAIF looks forward to continuing to work with our stakeholders, including the Queensland Government, to assist in the future development and growth of the State’s renewable energy sector.”