As per the terms of the power purchase agreement, Fortescue Metals will purchase up to 337.5MW of solar energy and large-scale renewable generation certificates at a fixed nominal price over a period of 25 years
Fortescue Metals inks long-term solar PPA with Genex for the 2GW Bulli Creek solar and battery project in Australia. (Credit: Samuel Faber from Pixabay)
Genex Power and Fortescue Metals Group have signed a long-term solar power purchase agreement (PPA) for the up to 2GW Bulli Creek solar and battery project (BCP) in Queensland, Australia.
Under the terms of the PPA, Fortescue Metals will offtake up to 337.5MW of solar energy and large-scale renewable generation certificates at a fixed nominal price over a period of 25 years.
Located about 4km from the Powerlink Queensland Bulli Creek 330kV substation, the Australian clean energy project comprises battery energy storage system (BESS) and solar photovoltaic (PV).
The multi-stage development Bulli Creek solar and battery project is being developed by Genex Power in association with Electric Power Development (J-POWER). Solar Choice is a co-developer of the project.
Fortescue Metals Group will obtain solar energy from the proposed 450MW first stage of the Bulli Creek solar project.
The iron ore company plans to use the solar energy from the project to operate a green hydrogen and green ammonia facility for its Gibson Island project in Australia.
The Gibson Island project is proposed to generate nearly 385,000 tonnes of green ammonia per annum from the green hydrogen produced onsite through a 550MW hydrogen electrolysis plant.
Fortescue Energy CEO Mark Hutchinson said: “This agreement is the first step in securing renewable power supply for the Gibson Island Project over the long term.
“It is the first PPA for the project and finalising it is an important milestone in our pursuit of a targeted final investment decision this calendar year.”
Genex Power aims to reach the final investment decision for the first stage of the Bulli Creek solar project in the second half of 2024. The first energy from the facility is planned to be generated in 2026.
The company is said to be continuing talks with external parties for additional solar offtake which is expected to increase the initial capacity of the project to 775MW.
Genex Power CEO Craig Francis said: “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.”
The PPA is subject to Genex Power securing financial close on the first stage of the Bulli Creek solar project by the end of 2024. It is also conditional upon Fortescue Metals achieving the final investment decision on the Gibson Island project by the end of this year.