ERM Power (ASX:EPW) has agreed to buy large scale generation certificates (LGCs) from the 212-MW Lincoln Gap wind farm in South Australia, construction of which is to commence this year.
The deal takes the AUD-450-million (USD 337m/EUR 318m) project closer to financial close, owner Nexif Energy said today, adding that the wind farm is planned to go online by the middle of 2018. As previously announced, Germany’s Senvion SA (ETR:SEN) will be in charge of the engineering, procurement and construction (EPC) and maintenance.
Lincoln Gap will be located west of Spencer Gulf and Port Augusta. Once operational and connected to the Electranet transmission network it is estimated to produce enough power for 111,000 households. There is the possibility of adding energy storage capacity.
Australian energy company ERM Power has signed two long-term LGC agreements for the project. In March it also agreed to buy power and green energy certificates from Edify Energy’s 58-MW Hamilton Solar Farm in regional Queensland.
Nexif Energy is a joint venture between Singapore-based independent power management company Nexif and private equity firm Denham Capital. At the end of 2016 it announced the completion of the acquisition of a portfolio of Australian projects developed by OneWind, including Lincoln Gap and the 90-MW Glen Innes wind scheme in New South Wales. These two represent a combined investment of over AUD 600 million.
(AUD 1 = USD 0.75/EUR 0.71)
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