Australian investment giant Macquarie Group is to provide development capital to the Asian Renewable Energy Hub to help boost capacity to over 11GW from 9GW.
Macquarie will also join the project consortium, which includes Intercontinental Energy, Vestas and CWP Energy Asia.
The consortium is developing over 7.5GW of wind and more than 3.5GW of solar power for the hub in Australia.
Over half of the power will go to existing and new energy users in Pilbara, including mines, mineral processing and hydrogen production.
The hub also plans to export electricity to south-east Asia via subsea cables.
Total capital investment in the hub is anticipated at more than $22bn.
Hub director Alex Tancock said: “The Asian Renewable Energy Hub will supply large-scale, low-cost, clean energy to enable customers in the Pilbara to grow, unlocking billions of dollars of investment potential throughout the region. We are excited to have Macquarie Group joining as a consortium member.”
Financial close for the first phase of the hub is anticipated in 2021. It is expected to be constructed in several phases over a six to seven-year period.
The project was recently granted lead agency status, for facilitation by the West Australian Department of Jobs, Tourism, Science and Innovation under the Lead Agency Framework.