ENERGY STORAGE

Neoen completes joint financing of Australian wind farm & battery project

February 6, 2024

Renewable energy producer Neoen has completed the joint financing of the 203 MW second tranche of its Goyder South Stage 1 wind farm and its 238.5 MW / 477 MWh Blyth Battery in Australia.

These two assets will deliver a 70 MW renewable energy “baseload contract” to mining company BHP, thereby supplying half of the energy needed to power its Olympic Dam mine in South Australia from July 2025, a Neoen statement said.

“Neoen will firm the wind energy output of the second tranche of Goyder South Stage 1 by using the storage capacity of Blyth Battery along with its energy management expertise,” the statement added.

The projects have been jointly financed by a combination of equity provided by Neoen and debt facilities from a group of five lenders including the Clean Energy Finance Corporation, KfW IPEX-Bank, ING, Mizuho and Westpac.

The two projects, located 150 kilometres apart in the Mid-North region of South Australia, comprise:

  • Goyder South Stage 1, a 412 MW wind farm, consisting of two tranches: the 203 MW second tranche is underpinned by the 70 MW baseload contract with BHP, while the 209 MW initial tranche has power purchase agreements with the Australian Capital Territory Government and Flow Power. Financing for the 209 MW first tranche was completed in December 2022.
  • Blyth Battery is a 238.5 MW / 477 MWh grid scale battery which will be equipped with grid-forming inverter technology thanks to support from the Australian Renewable Energy Agency.

Goyder South Stage 1 and Blyth Battery are both under construction, with more than 400 construction workers currently on site for the Goyder South project and a team of 40 at Blyth Battery, while 15 permanent positions are expected during operations.

Louis de Sambucy, Neoen Australia’s CEO, said: “We are delighted to announce the joint financing of the second portion of Goyder South alongside Blyth Battery and we sincerely thank the lender group for their trust and commitment. We are looking forward to powering BHP’s Olympic Dam mine with baseload renewable energy.”

Xavier Barbaro, Neoen’s chairman and CEO, added: “I would like to congratulate the Neoen Australia team on completing this joint financing of two assets, which builds upon the renewable baseload contract with BHP. In Australia, and around the world, Neoen is a long-term investor and owner of the renewable energy assets that it develops. This strong alignment of Neoen’s interest with that of our lenders is a genuine enabler and catalyst for growth”.