Windlab Limited (ASX: WND) today announced that it has secured a 10-year agreement with Queensland government owned corporation, CS Energy, to purchase the renewable energy and some of the large-scale generation certificates (LGCs) produced from Kennedy Energy Park Phase I, a 60.5MW hybrid renewable energy project.
Kennedy Energy Park Phase I is an innovative 43.5MW Wind, 15MW Solar and 2MW Li Ion battery storage hybrid project located near Hughenden in far North Queensland. The site was identified and developed by Windlab Limited and is now owned by Kennedy Energy Park Pty Ltd, a 50/50 joint venture between Windlab with Eurus Energy Holdings Corporation of Japan.
The agreement with CS Energy is subject to a number of conditions precedent, including ministerial approval and the project reaching financial close.
“Finalising an off-take arrangement for the project is an important milestone in securing financing and advancing the project to financial close and construction.” said Roger Price, Windlab’s Executive Chairman.
Windlab and CS Energy have also entered into a priority offer arrangement which affords CS Energy a first right of offer to negotiate a contract to purchase some or all of the electricity, LGCs or other green benefits generated by Kennedy Phase II. Kennedy Phase II is a large wind energy project wholly owned and developed by Windlab, located some 80Kms north of Kennedy Energy Park. It has the potential to provide more than 1,200MW of capacity.
“Coupled with the Queensland Government’s Powering North Queensland Plan, announced in June 2017, which includes the proposed construction of a high capacity transmission line through Kennedy Phase II, this agreement with CS Energy significantly advances the project by providing a path to an off-take arrangement.” added Roger Price.