Genex Power has entered into an offtake agreement with Australian energy giant Stanwell Corp., facilitating the development of the initial phase of the 775 MW Bulli Creek solar and battery project in southeastern Queensland.
Stanwell Signs 15-Year Deal with Genex for Australia's Solar Farm
Stanwell Corp, a state-owned power company in Queensland has entered into a 15-year agreement to buy renewable energy from Genex Power’s Bulli Creek solar project which is set to become Australia's largest grid-connected solar farm. As part of the power purchase agreement (PPA), Stanwell will acquire up to 550 MW from the first stage of the Bulli Creek solar project—located approximately 150 km southwest of Toowoomba, Queensland.
The 775 MW first stage marks the beginning of a multi-phase development that will eventually feature up to 2 GW of solar power and 400 MW/1,600 MWh of battery energy storage capacity. The project has already obtained approval for its planning, environmental and heritage.
In addition to the PPA arrangement, Stanwell Asset Maintenance Company (SAMCo)—a division of Stanwell—signed a five-year contract to provide operations and maintenance (O&M) services for Genex’s 50 MW Kidston Solar Farm in northern Queensland. This contract is the second one for the newly established SAMCo which will begin providing O&M services for the solar project starting in December 2024.
Stanwell launched SAMCo in November 2023 to offer operations and maintenance services for renewable energy projects across Queensland, creating new training and job opportunities. The 50 MW Kidston Solar Project includes 540,000 solar modules with a single-axis tracking system and is expected to have a 30-year lifespan. The project was first energized in November 2017, with the solar modules supplied by cadmium telluride thin-film manufacturer First Solar.
“SAMCo’s contract also locks in additional jobs in the renewable sector and showcases our ability to leverage our highly skilled workforce and experience to optimise the performance of renewable energy assets like those at Kidston Solar Farm.” said Michael O’Rourke, Stanwell CEO.
Genex Aims for Bulli Creek Investment Decision by 2024
Genex CEO Craig Francis stated that the company acquired by Japanese utility J-Power in August for AUD 380 million ($256.5 million) is aiming to reach a final investment decision on the first stage of the Bulli Creek solar project by the end of 2024.
“The 15-year offtake agreement at Bulli Creek will enable Genex to progress the project swiftly toward a final investment decision later this year, delivering 775 MW of new renewable energy capacity in Queensland from 2027,” said Craig Francis, Genex CEO.
Bulli Creek solar project
The Stanwell PPA is a positive outcome for Genex following the expiration of an offtake agreement with Fortescue for up to 337.5 MW of solar energy from the Bulli Creek solar project. Fortescue had planned to use renewable energy for its Gibson Island renewable hydrogen and green ammonia project but has since shifted its focus.
Stanwell's Genex Deal Boosts Queensland's Renewables
For coal-heavy Stanwell, the agreement with Genex aligns with its goal to build a portfolio of clean energy and storage projects across Queensland. This effort supports the state government's renewable energy targets of 70% by 2032 and 80% by 2035.
“Our partnership with Genex is an essential element of Stanwell’s portfolio transformation and will accelerate the delivery of our renewable energy pipeline in line with the Queensland Energy and Jobs Plan. This new power purchase agreement is another exciting step toward Stanwell’s target of 9 to 10 GW of renewable energy generation by 2035.” said Michael O’Rourke, Stanwell CEO.
Stanwell, which operates the 1,400 MW Tarong coal-fired power station near Kingaroy and the 1,445 MW Stanwell plant west of Rockhampton has secured nearly 4,000 MW of renewable energy generation and firming capacity projects that are either operational, under construction, or in development.