Decmil wins Vic windfarm works

Perth-based Decmil Group has secured $51 million in work on a windfarm in Victoria, as part of a larger contract awarded to its joint venture with South Australia's RJE Global.

That contract is valued at $71 million, with RJE to receive the remaining $20 million.

Decmil and RJE will complete civil and electrical works for the 52-turbine Ryan Corner windfarm, including the design and construction of wind turbine bases, access tracks, site cabling and a switch room.

The 218 megawatt, $359 million windfarm sits 300 kilometres west of Melbourne, near Port Fairy.

It is being developed by Global Power Generation, a subsidiary of Spanish-owned Naturgy Energy Group, which operates two other windfarms in Australia.

GDP has already signed a corporate power purchase agreement with NSW-based Snowy Hydro for at least 75 per cent of the output from Ryan Corner, with operations to start in the second half of 2022.

Decmil will begin work under the contract in December.

Its other windfarm projects include the Warradarge and Yandin windfarms in Western Australia, completed earlier this year.

Chief executive Dickie Dique said RJE had worked with Decmil on both projects.

“Decmil is well positioned to capitalise on the long-term trend of increasing investment in blue-chip projects within the Australian renewable energy sector," he said.

The contractor also worked on a 255MW solar farm in NSW.

It has an unresolved dispute in relation to the contract works with Sunraysia Solar Farm, which is controlled by Maoneng Australia and infrastructure developer John Laing.

Decmil alleges it completed construction work on time, but the solar farm owners have failed to obtain the R1 certificate from the Australian Energy Market Operator – required for the farm’s connection and commissioning.

The owners are claiming about $29 million from Decmil for liquidated damages, while Decmil has made a counter claim of $19 million for what it says are outstanding fees for the project.

The arbitration process is ongoing.

Decmil shares were up 6.6 per cent at 1:40pm AEDT to trade at 64.5 cents.