Construction of a $450 million wind farm in Port Augusta is a step closer with the signing of a new agreement between the developer and a major Australian energy company.
ERM Power (ASX: EPW) has signed two long term Large Scale Generation Certificate (LGC) agreements with leading independent power producer Nexif Energy to support construction of the Lincoln Gap Wind Farm 15 kilometres west of the Spencer Gulf town.
The Lincoln Gap Wind Farm Project is a 212MW initiative involving the construction and operation of up to 59 wind turbines. The project will feed into the South Australia’s electricity grid via the Electranet transmission network and produce enough electricity to power around 111,000 homes. It also includes allowances for battery storage of power.
Nexif Energy Australia’s CEO Zeki Akbas said the deal was a significant milestone for the project and took it closer to financial closure.
“These long-term agreements will see ERM Power buy LGCs generated by the Lincoln Gap Wind Farm in the coming years helping deliver renewable energy into the grid,” Mr Akbas said.
“It is a vote of confidence in the project, the town of Port Augusta and South Australia at a time when the need for innovative and reliable energy solutions in the State has never been higher.
“The project will also create a substantial number of jobs and stimulate economic activity in the region.”
ERM Power Managing Director & CEO Jon Stretch said it was gratifying to support a project which delivered new renewable sources of energy in Australia.
“ERM Power delivers 20 per cent of the energy fuelling business, government and industrials in Australia, enabling it to underpin the construction of new renewable infrastructure,” Mr Stretch said.
The Lincoln Gap Wind Farm Project will be built by Senvion Wind Energy Solutions.
Construction is expected to start later this year with the project generating electricity by mid- 2018.
In addition to the Lincoln Gap Wind Farm, Nexif Energy is developing a 90MW wind farm in the Waterloo Ranges, approximately 15km west of Glen Innes in the Northern Tablelands region of New South Wales.
Together, the Lincoln Gap Wind Farm and Glen Innes Wind Farm will, when constructed, represent a total investment of more than $600 million by Nexif Energy in Australia.
Nexif Energy was established in August 2015 by Nexif, a Singapore-based independent power management company, and Denham Capital, a leading global energy-focused private equity firm with more than $8.4 billion of invested and committed capital across eight fund vehicles, to develop, finance, construct and opportunistically acquire conventional and renewable power generation assets across Australia and South East Asia.
For more information visit www.nexifenergy.com.
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