Neoen reaches fin close on Kaban green hub project in Queensland

France’s Neoen SA (EPA:NEOEN) said today it has achieved financial close on its Kaban Green Power Hub in Queensland, expecting to complete the project in 2023.

The scheme, requiring a total investment of some AUD 370 million (USD 267.8m/EUR 228.6m), envisages the construction of a 157-MW wind farm in the Atherton Tablelands of Far North Queensland and a 320-km (199-mile) transmission line upgrade. The complex will form part of the North Queensland Renewable Energy Zone.

Debt financing for the project was extended by a syndicate of lenders including BNP Paribas, HSBC, MUFG, NAB and NORD/LB, the French renewables developer and power producer said.

Construction of the 28-turbine wind farm was initiated in May by Vestas Wind Systems A/S, the project’s principal contractor. The Danish wind turbine maker will equip the power plant with its V162-5.6 MW machines. Building activities are expected to last 21 months, with the wind park scheduled to go online in 2023.

Once up and running, the plant will be capable of generating around 457 GW of clean energy per year, or enough to supply 100,000 local homes. Its entire output is contracted under a 15-year capacity purchase agreement (CPA) with local energy company CleanCo.

The network upgrade, which will allow up to 500 MW of additional capacity to be hooked to the grid, will be financed by the Queensland government. State-owned electricity transmission system operator Powerlink Queensland will assist Neoen in the upgrade.

(AUD 1.0 = USD 0.724/EUR 0.618)

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