Enel Green Power Australia has inked a deal to buy the Julia Creek Renewables Project being developed alongside QEM’s vanadium site in north-west Queensland.

QEM managing director Gavin Loyden said EGPA’s commitment to developing the energy project was a major boost for QEM, Julia Creek and the North West Minerals Province.

“In addition to the direct benefits for QEM in having access to renewable power for our vanadium project, the whole region will enjoy significant direct and indirect benefits from this scale of development,” he said.

“EGPA’s approach to creating value for the communities in which they operate is very aligned to QEM’s own commitment in Julia Creek.”

QEM has been monitoring wind and solar resources at the site since mid-2022.

It has also conducted environmental assessments, topographic surveys, preliminary flood modelling, and geotechnical studies.

Its proposed renewables complex, delivering up to 1GW of energy, was envisaged to be constructed in three stages (see image below).  

Under the sale agreement, EGPA will acquire the monitoring equipment, data and intellectual property regarding project studies.

Related: QEM shortlists energy park contractors

The deal includes an upfront payment of $3 million to QEM and two milestone payments totaling $4 million.

It includes a further milestone payment upon EGPA reaching Final Investment Decision (FID).

The amount depends on variables including the total generation and storage capacity of the JCRP and the relevant proportions that wind, solar and BESS contribute to the project.

EGPA has also agreed to pay QEM a revenue-based royalty of 1-2 per cent once the energy project is up and running.

QEM will be offered a 10-year off-take agreement for up to 25MW firm capacity to supply its mine operations.

Mr Loyden said the Queensland Government’s commitment to deliver CopperString high-voltage transmission network to connect the North West Minerals Province (NWMP) and the National Electricity Market (NEM) was a catalyst for QEM to progress the renewables project and appoint EGPA to deliver it.

“It is testament to the quality of the renewables resource above ground and the vanadium resource below it that QEM has been able to attract and appoint Enel Green Power Australia to deliver the renewables project that will provide cheaper power for our project and assist us to contribute to the global clean energy transition,” Mr Loyden said.