IPPToday #181: Neoen secures financial close of US$270 million wind-storage project in Australia
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Neoen has secured project financing for the Bulgana Green Power Hub project, a 194MW wind farm and 20 MW battery storage facility to be constructed near Stawell in Victoria, Australia. The total investment of the project is AUD350 million (US$269.91 million).
The financing was provided by KfW IPEX-Bank, Korea Development Bank and Société Générale. It enabled the project to reach financial close on 19 March 2018. KfW IPEX-Bank has announced that it contributed around AUD101 million (US$77.7 million) of the total.
When complete, the Power Hub will generate 740,000 MWh of clean, renewable electricity per annum, enough power to supply approximately 130,000 homes.
The Hub will primarily supply Nectar Farms, an adjacent 30-hectare high-tech glasshouse that will produce pesticide-free fruit and vegetables for local and overseas buyers. This is the first such renewable energy supply agreement in the agribusiness industry.
The two developments will contribute more than 600 direct jobs to the Stawell region.
Power not consumed by Nectar Farms will be delivered to the national grid under a Support Agreement with the State Government of Victoria, thereby reducing power prices and making a significant contribution to Victoria's renewable energy target.
The wind farm will feature turbines from Siemens-Gamesa, with full construction to begin in April and operations scheduled to commence in August 2019. The 30-hectare Nectar Farms greenhouse should be completed around the same time.
Tesla is also involved in the project: the company is contributing the 20 MW battery, which will be used to ensure that electricity is supplied to Nectar Farms around the clock.
Global law firm White & Case LLP advised Neoen on the development and financing of the project.