UK-based Cubico closes deal with banks for 500MW wind project, its first in Australia

More than a year after construction began on the massive Wambo wind farm in Queensland and weeks after the first turbine went up, the UK-based Cubico – one of the largest privately owned renewable energy developers in the world – has finally reached financial close on the project.

The 500 megawatt (MW) two-stage development is backed by the Queensland government which put $455.8 million toward the project to buy half for its state-owned coal company Stanwell Corporation.

Despite the government support, it took until this month for Cubico to close the final financing, which brought in ANZ, Crédit Agricole, ING, NAB, and Westpac.

They’re lending $650 million across two separate five-year project finance facilities, and ANZ is also providing bank guarantee facilities.

“Securing two project financings simultaneously during construction is a major achievement and reflects the strength of Cubico’s relationships with our banking partners,” said Cubico CFO Matt Donaldson in a statement.

The project finance is just in time for the initial stage one 252 MW section to start producing electricity in 2025. Wambo will be Cubico’s first operational project in Australia.  

The 254 MW stage two is expected to start operations in 2026. The deal with Stanwell sees the coal company take half of the total output, as it seeks to decarbonise its operations.

The project’s 83 Vestas turbines will be some of the largest yet installed in Australia, at 247m tall. State-owned network company Powerlink is building a new 50km line to connect the wind farm to the grid. 

The first turbine was erected with great excitement in November.

The project may also include a 40MW/200MWh big battery.

Cubico country head David Smith says closing the financial side of for Wambo is a real milestone for company and project.

“Once completed, Wambo will play an important role in enabling Queensland to meet its clean energy generation targets while delivering lasting benefits through job creation, economic growth, and our Community Benefit Funds, which have already supported important initiatives in the region,” he said in a statement.