Genex Power Limited (Genex or the Company) is pleased to announce 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 wholly owned subsidiary of Fortescue Metals Group Limited (Fortescue).
The BCP is being developed by Genex in partnership with Electric Power Development Co., Ltd (J-POWER), with Solar Choice Pty Ltd as a co-developer.
Long-term Solar PPA with Fortescue
BCS Project Co. Pty Ltd as trustee for BCS Project Trust, a wholly owned subsidiary of Genex, has today entered into a long-term PPA with Fortescue for a large-scale solar farm, which is now intended to be developed as the first stage of the BCP (BCS). 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 (Gibson Island).
The PPA contains typical conditions precedent for an agreement of this nature, including financial close of the BCS by 31 December 2024, as well as a buyer condition precedent for Fortescue to reach a final investment decision in respect of Gibson Island by 31 December 2023.
Confirmation of BCS as First Stage of BCP
The PPA with Fortescue enables Genex and J-POWER to commit to the first solar stage development at the BCP at a minimum capacity of 450MW, with the PPA providing a 75% contracted revenue stream. Concurrently, Genex is continuing discussions with external parties for further solar offtake which may allow the initial capacity of the project to be increased up to 775MW.
The BCS will be followed by a battery energy storage system (BESS) stage of up to 400MW as previously announced, with the potential for further solar and/or BESS stages to follow up to the full 2GW capacity at the project site.
The first stage BCS project is targeted to reach a final investment decision in 2H CY2024, with first energy production targeted in 2026.
Commenting on today’s announcement, Genex CEO Craig Francis said:
“Today’s 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 2 GW 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.
We are extremely pleased to be working with Fortescue and supporting their plans for a large-scale electrolysis plant at Gibson Island, which we anticipate will help pave the way for a significant and prosperous green hydrogen and ammonia industry in Australia.”
Source: https://genexpower.com.au/