Keppel Renewable Energy, a wholly-owned subsidiary of Keppel Corporation, has signed an agreement to acquire a 45% stake in Harlin Solar to develop a large-scale, greenfield solar farm in Queensland Australia for a nominal sum of A$540 ($545).
This is Keppel Renewable Energy’s first solar farm project, and is in line with Keppel’s Vision 2030, which puts sustainability at the core of the group’s strategy.
Keppel’s Vision 2030 envisages the group growing its renewable energy portfolio as it contributes to the accelerating energy transition, it says.
Keppel Renewable Energy’s partners in Harlin Solar are Anthony Youssef, a veteran developer in Queensland, as well as New Energy Development, an Australian renewable energy company involved in projects around the world.
The acquisition is subject to approval by Australia’s Foreign Investment Review Board.
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In addition to the stake, Keppel Renewable Energy will provide a loan of up to A$3.24 million to Harlin Solar to fund the development costs of the project.
Keppel has the option to acquire the remaining stakes in Harlin Solar for a maximum consideration of A$52.35 million upon reaching certain agreed development milestones.
Keppel Renewable Energy will take the lead role in the development and management of the construction and operation of the solar farm. This includes undertaking the grid connection studies, assessing the site and technology requirements, sourcing for off-takers as well as project management of the EPC (Engineering, Procurement, Construction) of the solar farm.
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To maximise energy yield, Keppel Renewable Energy intends to employ the most modern solar module technology such as bifacial panels.
The project, which is located on a site that’s over 2,000 hectares, will have a capacity of at least 500 mw, and will generate enough energy to power more than 142,000 average Australian homes.
“This would mean a saving of some 800 kilotonnes of carbon emissions per year as compared to the power generated for the current Queensland energy grid,” says Keppel Renewable Energy.
“This project reflects Keppel’s continuing journey to support the world’s energy needs through renewables. It is part of Keppel’s Vision 2030, which includes a long-term target of growing the Group’s portfolio of renewable energy assets to 7 GW by 2030,” says Chris Ong, managing director of Keppel Renewable Energy.
“Keppel Renewable Energy will collaborate with other business units and harness the technical and commercial capabilities across the Group to develop, own and operate renewable energy infrastructure in a cost-efficient, safe and reliable manner. We can also work with the Group’s asset management platforms, such as the Keppel Asia Infrastructure Fund, to help fund the project,” Ong adds.
According to Keppel Renewable Energy, the solar farm development project is expected to bring jobs to the region and add indirect economic opportunities for local businesses.
Shares in Keppel Corp closed 5 cents lower or 0.9% down at $5.30 on Dec 22.
