Fortescue deal boosts Bulli Creek energy plans

Fortescue Metals Group has signed up to draw energy from Genex Power's Bulli Creek solar and battery development to help power its Gibson Island project in Brisbane. The 25-year solar power purchase agreement will secure 337.5 MW of the energy generated from the first stage (proposed at 450MW) of the project. Genex is developing the Bulli Creek renewable energy project about 100km south-west of Toowoomba in partnership with J-POWER. Fortescue is partnering with Gibson Island plant owner Incitec Pivot on a project to decarbonise the ammonia operation using renewable hydrogen. The proposal would see the production of about 385,000 tonnes of green ammonia a year from the green hydrogen produced onsite through a 550MW hydrogen electrolysis facility. Fortescue Energy chief executive officer Mark Hutchinson said the agreement with Genex would secure part of the renewable power required for the Gibson Island project while underpinning the development of a new renewable energy project in Queensland. The Gibson Island ammonia plant. “This agreement is the first step in securing renewable power supply for the Gibson Island Project over the long term,” Mr Hutchinson said. “It is the first PPA for the project and finalising it is an important milestone in our pursuit of a targeted final investment decision this calendar year." The PPA is conditional on Genex achieving financial close on the first stage of its Bulli Creek solar project by the end of next year and Fortescue reaching a final investment decision on the Gibson Island project by December 31, 2023. Genex is continuing discussions with other parties for further solar offtake which may allow the initial capacity of the Bulli Creek solar project to be increased up to 775MW. Genex said today this would be followed by a battery energy storage system (BESS) stage of up to 400MW, with the potential for further solar and/or BESS stages to follow up to the full 2GW capacity at the project site. “Today’s announcement marks a major milestone, not only for Genex’s 2.25GW development portfolio, but also for the Australian energy transition to renewables," Genex chief executive officer Craig Francis said. "Genex acquired the up-to-2GW Bulli Creek battery and solar project in August 2022, initially envisioning a stand-alone battery energy storage system as a first stage for the project. "However, securing this long-term 25-year offtake agreement with Fortescue for 337.5MW of solar capacity at Bulli Creek has reshaped the first stage of the project into a large-scale solar farm. "Genex and J-POWER anticipate the agreement with Fortescue will underpin a solar farm capacity of 450MW, with the long-term nature of the agreement highly attractive for prospective project financiers. "Discussions are continuing with external parties for further offtake to support a solar farm capacity of up to 775MW for this first stage of the project. "This would position the Bulli Creek Solar Farm as the largest solar farm connected to the National Electricity Market."

Fortescue deal boosts Bulli Creek energy plans

Industry Queensland

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