Australia's Windlab Ltd (ASX:WND) on Monday said it has secured an off-take deal for its 60.5-MW Kennedy Energy Park Phase I hybrid renewable energy project in North Queensland.
The company has signed a 10-year agreement with CS Energy, a Queensland government owned corporation which will purchase the renewable energy and some of the large-scale generation certificates (LGCs) from the scheme. The agreement is subject to conditions precedent, including ministerial approval and the project reaching financial close.
Windlab owns Kennedy Energy Park Phase I, which will have 43.5 MW of wind, 15 MW solar and 2 MW battery storage, in a joint venture with Eurus Energy Holdings Corp of Japan.
CS Energy will also have a first right of offer to negotiate a contract to buy some or all of the output of Kennedy Phase II, a wind project with a potential capacity of over 1,200 MW.
"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," explained Windlab's executive chairman Roger Price.