Construction begins on next tranche of Goyder South Stage 1 wind farm & battery storage

Neoen is forging ahead with the construction of the second tranche of the Goyder South Stage 1 and the Blyth Battery projects in South Australia following financial close. 

The two renewable energy projects are funded through a combination of equity from Neoen and debt financing from a group of five lenders including the Clean Energy Finance Corporation, KfW IPEX-Bank, ING, Mizuho and Westpac. 

“We are delighted to announce the joint financing of the second portion of Goyder South alongside Blyth Battery and we sincerely thank the lender group for their trust and commitment. We are looking forward to powering BHP’s Olympic Dam Mine with baseload renewable energy,” Neoen Australia CEO Louis de Sambucy said. 

“I would like to congratulate the Neoen Australia team on completing this joint financing of two assets, which builds upon the renewable baseload contract with BHP. In Australia, and around the world, Neoen is a long-term investor and owner of the renewable energy assets that it develops. This strong alignment of Neoen’s interest with that of our lenders is a genuine enabler and catalyst for growth,” Neoen Chairman and CEO Xavier Barbaro said. 

The second tranche of Goyder South Stage 1 will generate 203MW of renewable energy while Blyth Battery will have a capacity of 238.5MW / 477MWh. The two assets are underpinned by a 70MW renewable energy baseload contract to BHP to provide clean power to the Olympic Dam Mine. 

Clean Energy Finance Corporation is committing $99 million towards the delivery of the two projects that will help decarbonise one of the largest critical mineral mines in the world – the Olympic Dam Mine – and this significant investment is a show of support by the Australian Government towards Net Zero Targets. 

“This investment builds on our long-standing support for the enabling technologies that will transform the grid and deliver clean energy to households and businesses around Australia. By developing additional renewable energy generation alongside the firming and storage capacity of large-scale batteries, we can continue to decarbonise the grid while ensuring stability. 

“The challenge of reducing emissions across the economy starts with the energy sector. The offtake agreement with BHP demonstrates how reducing energy emissions accelerates decarbonisation across the economy. This innovative solution to provide firmed green energy at Olympic Dam enables a significant energy user to progress its net zero goals while producing a critical mineral like copper more sustainably,” Clean Energy Finance Corporation CEO Ian Learmonth said. 

Goyder Renewables Zone map (source: Goyder Renewables Zone)

Both projects are located in the Mid-North region of South Australia, about 150-kilometres apart from each other. 

Goyder South Stage 1 consists of two tranches and will have a total generation capacity of 412MW. The project currently has three power purchase agreements (PPA) including a 14-year contract with the Australian Capital Territory (ACT) Government to provide 100MW, a 10-year contract with Flow Power to provide 40MW, and a 70MW baseload contract with BHP. 

Blyth Battery, on the other hand, is a grid scale battery system that is equipped with grid-forming inverter technology – supported by the Australian Renewable Energy Agency (ARENA) – to allow it to provide essential system stability services traditionally provided by synchronous generation such as gas and coal. 

Construction is now underway on the two projects. Currently, there are 400 workers on site at Goyder South and about 40 at the Blyth Battery site. A further 15 permanent jobs will be supported once the projects are operational. 

“It’s great to see clean energy powering mining – bringing together key national industrial strengths in renewables and resources, while creating jobs. 

“The Albanese Government is excited to support a project that involves three vital things for Australia’s future – wind power, batteries, and strategic materials,” Minister for Climate Change and Energy Chris Bowen MP said. 

Both Goyder South Stage 1 and Blyth Battery are part of the broader Goyder Renewables Zone, a large-scale hybrid renewable energy project in Burra, South Australia. It consists of two separate projects, Goyder North (North of Burra) and Goyder South (South of Burra). 

Sources: Minister for Climate Change and Energy – Media Releases; Neoen; Goyder Renewables Zone (1, 2); Clean Energy Finance Corporation; Renew Economy; Australian Mining