Genex Power has finalised a 25-year deal to provide 337.5 MW of solar power to Fortescue, an iron ore company. The energy company will provide solar energy generated by the 2 GW Bulli Creek Solar and Battery Project to Fortescue’s subsidiary, Fortescue Metals Group, as part of the first stage of its long-term power purchase agreement (PPA). Furthermore, Genex, Electric Power Development (J-Power), and Solar Choice are working on the solar plus storage project.
Fortescue plans to use this energy to make 385,000 tonnes of green ammonia from green hydrogen produced at its Gibson Island project’s 550 MW hydrogen electrolysis unit. Reportedly, the PPA is conditional on Genex reaching financial close on the project by the end of 2024 and Fortescue reaching an official investment choice on its Gibson Island project by the end of 2023.
In August 2022, Genex Power agreed to purchase the development rights to a 2 GW solar and battery energy storage system plant in Queensland. The Bulli Creek Clean Energy Project was situated in south-east Queensland, nearly 100 km southwest of Toowoomba. Solar Choice, an Australian producer of solar energy equipment, sold the project rights to Genex.
REGlobal’s Views: Steel giants across the world are increasing their renewable energy procurement to meet their energy requirements. Fortescue, which is focusing on also developing green hydrogen ecosystem and electrolyser manufacturing, is significantly increasing its share of renewable energy in its energy mix.
