Construction Begins on Solar and Battery Project at Former Coal Mine

Construction Commences on Solar Farm and Battery Project in NSW

Work is set to commence without delay on a solar farm and battery system at the site of a former coal mine in New South Wales’ Hunter region, following the project achieving financial closure.

Swedish developer OX2 announced this significant milestone for the Muswellbrook Solar Farm and Battery project on Monday, marking its inaugural owner-operator venture in Australia.

Details of the Project

The project features a 135 megawatt (MW) solar farm integrated with a 100 MW battery energy storage system capable of providing up to two hours of energy. This initiative was one of nine renewable projects in Australia that recently secured power purchase agreements with tech giant Amazon, as part of a larger 430 megawatt (MW) agreement worth AUD 2.8 billion.

Amazon has committed to 94.5 MW of photovoltaic (PV) power and 70 MW of battery capacity from OX2’s Muswellbrook project, which will be situated adjacent to the coal mine that shares its name, having stopped operations in 2022. The land is jointly held by mine operator and project co-developer Idemitsu Australia.

Transitioning from Coal to Renewable Energy

The two companies have confirmed that Idemitsu will remain as a long-term landholder while transitioning from operating the oldest open-cut mine in the Hunter Valley to a renewable energy hub, which may also offer hydrogen solutions.

OX2 CEO, Matthias Taft, expressed pride in the project’s development and its role in bolstering New South Wales’ energy supply through a post on LinkedIn. “This investment underscores our long-term commitment to Australia and supports our role as an independent power producer,” he added.

Development Approval Process

Approximately a year ago, the project received approval from the NSW Independent Planning Commission, following a re-evaluation prompted by over 50 public objections. Notably, a submissions report indicated that the majority of these objections were lodged by individuals living more than 100 km away, with significant input from residents in Queensland.

The Commission Panel concluded that the former coal mine site was appropriate for solar and battery development, stating it served the public interest and aligned with NSW’s renewable energy goals and emissions reduction targets. However, the IPC set forth specific conditions, including mandates for a road safety audit, waste management plan, biodiversity management plan, employment strategies, and a comprehensive decommissioning approach.

Community Engagement and Support

OX2 is committed to meaningful community engagement, aiming to deliver lasting benefits to the local population through job creation, economic development, and skills training.

The initiative will contribute approximately AUD 115,000 annually to a Community Benefit Sharing Program, as outlined in a Voluntary Planning Agreement with Muswellbrook Shire Council.

Stephen Symons, OX2 Australia’s vice president, stated, “We are proud to have reached financial closure on the Muswellbrook project, showcasing Australia’s renewable energy potential. Our initiatives are designed to benefit regional communities while adhering to our commitment to Australia’s energy future.”