Under its power purchase agreement (PPA), renewable energy supplier Genex and Fortescue have agreed to extend the sunset date for achieving a final investment decision for Fortescue’s Gibson Island project to February 28 2024.
Both parties have also agreed to extend the sunset date for achieving financial close of the Bulli Creek solar and battery project (BCS) to March 31 2025.
The announcement was made two months after Genex and Fortescue first entered into a 25-year solar PPA, which concerned the BCS in Queensland for an offtake for up to 337.5 megawatts of solar energy.
The BCP is being developed by Genex in partnership with Electric Power Development (J-Power), with Solar Choice as a co-developer.
The deal enables Genex and J-POWER to commit to the first solar stage development at the BCP at a minimum capacity of 450 megawatts (MW) , with the PPA providing a 75 per cent contracted revenue stream.
Fortescue also intends to utilise the solar energy procured under the PPA for the operation of a green hydrogen and green ammonia facility in connection with its Gibson Island project in the US.
“We are extremely pleased to be working with Fortescue and supporting their plans for a large-scale electrolysis plant at Gibson Island, which we anticipate will help pave the way for a significant and prosperous green hydrogen and ammonia industry in Australia,” Genex chief executive officer Craig Francis said in October 2023.
Genex has advised that discussions with external parties for further solar offtake remain ongoing, which may allow the initial capacity of the project to be increased up to 775MW.
“It is expected that such discussions will conclude and the size of BCS confirmed by mid-2024,” the company said.
Genex and J-POWER will continue to target a final investment decision for the first stage of the BCS project in the second half of the 2024 calendar year, with first energy production expected in 2026.
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