Alinta Energy has appointed two contractors to build its $180 million solar battery project in Port Hedland while continuing to assess a big sell-down of its WA operations.
Alinta Energy has appointed two contractors to build its $180 million solar battery project in Port Hedland while continuing to assess a big sell-down of its WA operations.
CIMIC Group subsidiary UGL has been appointed to deliver a 35 megawatt one-hour battery storage system.
A joint venture between Shanghai Electric Power Design Institute Co and local contractor Monford Group will deliver a 45 MW solar array.
The total cost of the project is around $180 million.
This is one of many growth projects on Alinta’s agenda, including more renewables in the Pilbara, major offshore wind projects in Victoria and the Oven Mountain pumped hydro development in NSW.
To help fund these projects, Alinta has appointed investment bank Goldman Sachs to investigate the sale of an 80 per cent stake in its existing Pilbara operations.
Alinta, which is owned by Chinese company Chow Tai Fook Enterprises, wants to retain a minority stake in its Pilbara assets and continue as operator.
Its Pilbara assets include the 210MW Port Hedland power station, the 238MW Newman power station, which has a 35MW battery, the 60MW Chichester solar farm and the Goldfields gas pipeline.
The group has development approvals for Port Hedland that could facilitate a near doubling in the scale of its current project, with an expansion to a 60MW two-hour battery storage system and a 90MW solar array.
Longer term, it sees much larger opportunities to expand renewable energy capacity to support efforts by the mining industry to decarbonise.
In particular, Alinta and BHP have entered into a memorandum of understanding in relation to the development of a 45MW wind farm at Shay Gap, 165 kilometres east of Port Hedland.
The current Port Hedland project will require the installation of around 100,000 solar panels over 100 hectares.
The battery and solar array will be located about 14km south of the town, near the existing power station.
The project underpins a power purchase agreement with BHP and is expected to cut emissions from the miner’s port operations.
The project is expected to create around 200 jobs and be operational by late 2024.
Alinta Energy’s chief development officer Ken Woolley said, “We’re excited to bring these EPC partners on board to help us deliver the project for BHP and look forward to a safe and successful construction phase.”
UGL managing director Doug Moss said: “UGL is a market leader in the design, construction and operation of renewable assets across Australia. We look forward to continuing our relationship with Alinta to provide a safe and effective outcome for their Port Hedland project.”
