Financial close for FNQ green power hub
Civil works are already underway on the project after EPC contractor Vestas was provided with notice to proceed in May.
The project set to deliver more than 250 construction jobs and to generate 457 GWh of affordable clean energy each year from 2023.
It consists of a 157 MW wind farm located near Ravenshoe and a 320km transmission line upgrade of the North Queensland coastal circuit.
The Kaban Green Power Hub was at the centre of a funding controversy in May when it emerged that Northern Australia Minister Keith Pitt had vetoed a Northern Australia Infrastructure Facility (NAIF) loan arrangemnet for the project.
Neon said today its project costs were being met by a syndicate of five lenders, BNP Paribas, HSBC, MUFG, NAB and NORD/LB.
The Queensland Government has committed funding towards the transmission network upgrade which will support the wind farm and establish the Northern Queensland Renewable Energy Zone (REZ).
Neoen and Powerlink Queensland are partnering to upgrade the line between Cairns and Townsville, unlocking up to 500 MW of additional capacity for future projects.
“The Kaban Green Power Hub is pivotal to unlocking Queensland’s first Renewable Energy Zone,” Powerlink chief executive Paul Simshauser said.
“It forms part of $700 million worth of work Powerlink is delivering in North Queensland over the next five years.”
The project is underpinned by a 15-year capacity purchase agreement (CPA) with CleanCo, Queensland’s publicly owned clean energy company, for 100 per cent of the energy generated.
“The Kaban Green Power Hub project provides critical system strength support for North Queensland,” CleanCo Queensland chief executive officer Dr Maia Schweizer said.
“As an important part of CleanCo’s low emission generating portfolio, the renewable energy generated by this wind farm will allow us to offer affordable contracts to big energy users, translating to continued lower energy prices and increased competitiveness for Queensland businesses and communities.”
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