Neoen to supply solar power to GFG Alliance’s Victorian steelworks
Neoen's CEO Xavier Barbaro and GFG Alliance's Executive Chairman Sanjeev Gupta. Image source: GFG Alliance (www.gfgalliance.com).
French renewable energy company Neoen has struck a 15-year off-take deal with SIMEC ZEN Energy for most of the electricity generated from its 100-MW Numurkah solar project in Victoria.
The power purchase agreement (PPA) is the first step of a broader cooperation between the two companies through which they will seek to “dramatically reduce energy costs to industry in Australia,” GFG Alliance said last week. The Australian firm, of steel entrepreneur Sanjeev Gupta, is the owner of certain steal assets in Victoria. Through its SIMEC Energy business it holds a majority stake in Australia-based ZEN Energy.
The Numurkah solar park, itself, will be installed near the town with the same name, consisting of nearly 350,000 photovoltaic (PV) panels. Construction is expected to start this year, Neoen, which is the developer and owner of the project, says. The project is already supported by a 38-MW Green Certificate Purchase agreement by the Victorian government.
The new contract is expected to help GFG Alliance reduce the energy costs at its Laverton steel works in Victoria. Its signing followed a memorandum of understanding (MOU) between Neoen and SIMEC ZEN Energy aimed at developing, operating and supplying electricity from renewable power plants.
“We believe renewable energy is a game-changer and both agreements reflect a shared commitment to deliver low-cost, sustainable energy solutions into the market,” said Xavier Barbaro, Neoen’s CEO.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.