Shell Australia is to build and operate a 120MW solar farm in the state of Queensland, its first industrial-scale photovoltaic project in the country.
The Gangarri project will be located near Wandoan and will comprise about about 400,000 solar panels.
Construction of Gangarri will create about 200 jobs, Shell said.
The solar farm is scheduled to be operational in early 2021, it added.
Gangarri will be located adjacent to existing power infrastructure and inside the footprint of Shell’s QGC onshore natural gas project that stretches across Queensland’s Western Downs region.
Shell said the investment follows the company’s recent acquisition of industrial electricity retailer ERM Power and investment in solar developer ESCO Pacific.
Shell Energy Australia will be the main customer for the output from the project, with an equivalent amount of electricity purchased from the national grid and sold to Shell’s QGC business.
The company said Queensland was selected as the location for the project due to its natural advantages for solar generation, having some of the most reliable sunshine in the world.
Shell Australia chairman Tony Nunan said: “We believe solar will play an increasing role in the global energy system, especially when partnered with a reliable energy source such as gas.”
“We are proud to be investing in the ‘Sunshine State’ and Queensland is a key centre of activity for Shell’s global ambition to expand our integrated power business.
“Shell’s Gangarri solar farm will help power the operations of our QGC project and reduce carbon dioxide emissions by around 300,000 tonnes a year.
“It continues our long-standing commitment to the regional development of Queensland and creating thriving, diverse local economies.
“This project will create local jobs in a range of skilled trades, including electricians, machinists and operators.
“We recognise the need to play an active role in creating the local talent, skills and opportunities that will be critical for regional Queensland to realise its potential as a renewable energy powerhouse.
“Shell is proud to support the development of local talent and opportunities for young people to acquire skilled trades through our Pathways programmes, which creates local traineeships and apprenticeships, and our investment in science education programs in local schools, including in the Western Downs.
“Shell has invested over A$58m in regional Queensland over the last 10 years supporting these and other social investment programmes.”